IMF Projects Stable Indonesian Economy in 2024

The International Monetary Fund (IMF) projects Indonesia's economic growth in 2024 to reach 5.0%, stable or unchanged compared to last year.

This is in line with the global economic projection, which is predicted to stabilize at 3.2% in 2024.

"Despite many gloomy predictions, the world has successfully avoided a recession, the banking system has proven quite resilient, and the economies of developing countries have not come to a sudden halt," the IMF stated in its April 2024 World Economic Outlook.

However, this year several risks overshadow the global economy, particularly geopolitical conflicts.

"The conflict in Gaza and Israel could escalate to a wider region. The ongoing attacks in the Red Sea and the war in Ukraine also risk causing supply shocks that trigger surges in food, energy, and transportation prices," said the IMF.

"Geopolitical shocks could complicate the disinflation process and delay central bank policy easing, thus negatively impacting global economic growth," it continued.

The IMF estimates that the impact of geopolitical shocks will be most severely felt in low-income countries, especially those whose populations struggle to access food and energy.

The IMF also assesses that the global economy this year faces risks of inflation, debt pressure, and a lack of trust in governments in many countries.

"In several countries across various income groups, the level of trust in government, legislature, and political parties is less than 50 percent," said the IMF.

"Dissatisfaction with state institutions, often rooted in perceptions of government policy failures, can trigger social unrest and contribute to conflict," it continued.