Finance Minister forecasts 4.5–5.2% growth for first quarter

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Finance Minister Sri Mulyani Indrawati has projected that the Indonesian economy will grow 4.5–5.2 percent in the first quarter of 2022 amidst uncertainty about the global economy due to the Russia-Ukraine war.

“We will remain in a range of 4.5 to 5.2 percent, with the mid-point of 5 percent for the first quarter of 2022,” she said at a press conference in Jakarta on Wednesday.

The first-quarter growth projection is based on several economic indicators, which performed well until early March 2022, including consumer confidence, retail sales, motor vehicle sales, cement consumption, and electricity consumption, she informed.

Throughout 2022, the national economy is projected to grow within a range of 4.8–5.5 percent, she added.

Many international institutions, including the Organisation for Economic Cooperation and Development (OECD, World Bank, and International Monetary Fund (IMF), are expected to revise their global economic outlook downward this month, the minister said.

“In April, there will be many reports about the downward revision of the global economic outlook following the war in Ukraine,” she added.

OECD had revised its global economic growth forecast for 2022 downward to 3.5 percent from 4.5 percent earlier.

Meanwhile, the World Bank had also lowered its economic growth forecast for East Asia and the Pacific this year to 4.0–5.0 percent from 5.4 percent.

“The World Bank has projected that the Indonesian economy will grow 5.1 percent this year,” she said.

Source: Antara News