IMF Projects Indonesia's 2022 Economic Growth to Surpass That of the US and China

Economics & Macro

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Adi Ahdiat 03/02/2022 17:50 WIB

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The IMF projects that U.S. economic growth in 2022 will fall to 4%, China's to 4.8%, while Indonesia's will rise to 5.6%.

Indonesia, United States, and China Gross Domestic Product (GDP) Growth Projections (2021-2022)

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IMF Projects Indonesia's 2022 Economic Growth to Surpass That of the US and China

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Indonesia, United States, and China Gross Domestic Product (GDP) Growth Projections (2021-2022)

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The International Monetary Fund (IMF) predicts that 2022 will be a challenging year. However, the IMF projects that Indonesia's economic growth will surpass that of developed countries such as the United States and China.

In its January 2022 World Economic Outlook Update, the IMF forecasts that economic growth in superpowers like the United States (US) and China will slow down, weakening global economic growth from 5.9% in 2021 to 4.4% in 2022.

The IMF predicts that US Gross Domestic Product (GDP) growth will weaken from 5.6% in 2021 to 4% in 2022. According to the IMF, this is influenced by uncertainty surrounding the passage of the US government's 'Build Back Better' fiscal policy, the early withdrawal of monetary accommodation, and ongoing supply chain disruptions.

China's GDP is also predicted to weaken from 8.1% in 2021 to 4.8% in 2022 due to the housing sector crisis, Covid-19 related mobility restrictions, and low private consumption.

However, amidst this situation, Indonesia's GDP is projected to grow from 3.3% in 2021 to 5.6% in 2022.

In the World Economic Outlook Update, the IMF does not specifically explain the factors that could boost Indonesia's economic growth. The IMF only notes that over the next year, countries need to be wary of economic disruptions caused by the spread of the Omicron variant of Covid-19, supply chain disruptions, energy price volatility, inflation, geopolitical tensions, and the threat of natural disasters related to climate change.

Editor : Annissa Mutia

"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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IMF Projects Indonesia's 2022 Economic Growth to Surpass That of the US and China

IMF Projects Indonesia's 2022 Economic Growth to Surpass That of the US and China

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IMF Projects Indonesia's 2022 Economic Growth to Surpass That of the US and China

IMF Projects Indonesia's 2022 Economic Growth to Surpass That of the US and China

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