Indonesia Ranks Among the Top 10 Countries with the Largest GDP (Purchasing Power Parity) in the World

Based on current Purchasing Power Parity (PPP) data, Indonesia is among the top 10 countries with the largest Gross Domestic Product (GDP) in the world.

PPP is a comparison of the value of a currency determined by its purchasing power for goods and services in each country. The International Monetary Fund (IMF) reports that Indonesia currently ranks seventh in the world with a GDP of US$4.02 trillion using this PPP approach.

Indonesia's position surpasses Brazil and the United Kingdom, which are ranked eighth and ninth, respectively. According to IMF records, the PPP GDP of these two countries is US$3.78 trillion and US$3.77 trillion. France follows in tenth place with US$3.68 trillion.

Meanwhile, China holds the first position with a value of US$30.07 trillion, followed by the United States (US) at US$25.03 trillion, India at US$11.66 trillion, Japan at US$6.11 trillion, Germany at US$5.3 trillion, and Russia at US$4.46 trillion.

The IMF projects that Indonesia's inflation rate will continue to increase until next year. For 2022, the IMF predicts Indonesia's annual inflation will reach 4.6%, then rise to 5.5% in 2023.

The good news is that Indonesia's inflation is projected to remain lower than global inflation. The IMF projects global inflation to reach 8.8% in 2022 and 6.5% in 2023.

Indonesia's inflation until next year is also projected to be lower than the average inflation rate of developing countries, as shown in the graph above.

(read: IMF Predicts Indonesia's Economy Will Only Decline Slightly in 2023)