Indonesia projects 5.2 pct economic growth in 2024
Indonesian Finance Minister Sri Mulyani Indrawati has expressed belief that Indonesia’s economy will remain strong with a growth rate of 5.2 per cent in 2024, reported ANTARA news agency.
“Based on global dynamics and domestic economic potential, Indonesia’s economy is estimated to grow strongly in 2024, amounting to 5.2 per cent,” she noted in a statement from her ministry on Wednesday.
In the January edition of the World Economic Outlook, the International Monetary Fund (IMF) estimated global economic growth of 3.1 percent in 2023 and 2024.
Indrawati said that domestic inflation is expected to be relatively stable due to the 2024 general elections’ impact on public and government spending.
Housing sector policies started in the fourth quarter of 2023 will be one of the driving forces in 2024.
In line with this, the 2024 State Budget will be utilised to reduce external turmoil and accelerate economic transformation inclusively and sustainably, she remarked.
She highlighted Indonesia’s economy in 2023, which grew positively amid the projected slowdown in the global economy.
Indonesia’s economy grew by 5.04 per cent year-on-year (y-o-y) in the fourth quarter of 2023 and 5.05 per cent y-o-y for the whole of 2023, supported by strong demand, particularly in consumption and investment.
Public consumption increased by 4.47 per cent in the fourth quarter of 2023 and grew by 4.82 per cent throughout 2023.
Growth in Gross Fixed Capital Formation (PMTB) or investment was recorded at 5.02 per cent in the fourth quarter of 2023 and 4.4 per cent in the whole year, an increase from 3.9 per cent in 2022, she pointed out.
Positive growth was also recorded in business sectors, with manufacturing, trade, agriculture, and mining sectors contributing most, Indrawati stated.
The manufacturing sector grew positively by 4.07 per cent in the fourth quarter and by 4.64 per cent throughout 2023.
Strong domestic and global demand for Indonesia’s export products supported the growth of this sector.
The trade sector also grew positively by 4.09 per cent in the fourth quarter and recorded a growth of 4.85 per cent in 2023, driven by an increase in the trade activity of domestic goods and motorbike sales.
Amid changes in weather due to the El Nino phenomenon, Indrawati stated that the agricultural sector demonstrated moderate growth of 1.12 per cent in the fourth quarter of 2023 and 1.30 per cent throughout 2023. — Bernama