Economy to grow 5.2–5.3% in second quarter: Bank Mandiri

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The Indonesian economy will grow by 5.2 percent to 5.3 percent (year on year) in the second quarter of 2022, in line with accelerated vaccinations and the improving pandemic situation, state-run PT Bank Mandiri forecast.

“Our temporary forecasting, in the second quarter of 2022, (the economy) will grow by around 5.2 percent to 5.3 percent,” director of treasury and international banking at Bank Mandiri, Panji Irawan, said at a media gathering and macroeconomic outlook presentation, here on Wednesday.

An improvement in public expenditure will be one factor behind the projected economic growth, which is expected to be higher than the first quarter realization of 5.01 percent, he added.

Other factors comprise the growth in exports, increase in transactions during Ramadan and Eid al-Fitr, and rising prices of commodities in the global market, he said.

According to Irawan, based on the Mandiri Spending Index (MSI), public spending in the second quarter was higher compared to throughout the pandemic, with the spending frequency index reaching a level of 185.5 and the spending value index rising to a level of 159.9.

“This illustrates a significant economic recovery, with the frequency and value of spending going up. This is higher than the previous two years,” he noted.

As per the Mandiri Spending Index data, the spending level index in Bali and Nusa Tenggara islands gradually improved to reach 80.6 in the 2022 Ramadan period, its highest level during the pandemic.

The growth in the sectoral economy also became stronger, as evidenced by good imports of raw materials and capital goods, he said.

“Taking advantage of market opportunities in export destination countries in line with the global economic recovery,” he added.

Based on these factors, Bank Mandiri has predicted that Indonesia’s economic growth in 2022 will reach 5.17 percent (year on year).

Source: Antara News