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What is the predicted economic growth of Indonesia for 2017-2018?

08/08/2017 16:18 WIB

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Indonesia's Economic Growth Forecast 2017-2018

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Indonesia's Economic Growth Forecast 2017-2018

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The Central Statistics Agency (BPS) recorded economic growth in the first half of 2017 at only 5.01 percent. Although considered stagnant, Bank Indonesia (BI) remains optimistic that economic growth throughout 2017 will reach the target of 5.2 percent. Furthermore, BI predicts economic growth will reach 5.5 percent in 2018.

Similarly to BI, several international institutions have also expressed positive assessments and forecasts for the Indonesian economy. The World Bank estimates that the Indonesian economy will grow to 5.2 percent this year and strengthen to 5.3 percent in 2018. Meanwhile, the International Monetary Fund (IMF) states that Indonesian economic growth could reach 5.1 percent in 2017 and 5.3 percent in 2018. Furthermore, Fitch Ratings projects higher growth, at 5.2 percent in 2017 and 5.6 percent in 2018. All of these institutions share optimism regarding the prospects of the Indonesian economy.

Future economic growth is expected to improve with the ongoing infrastructure projects and increased investment. In addition, growth will be driven by improving fiscal conditions, a stable Rupiah exchange rate, and controlled inflation.

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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