The World Bank reports that Indonesia’s economic growth in 2024 will reach 4.9 percent, lower than the previous year’s 5 percent.
According to the Global Economic Prospects 2024 report released on Wednesday, 10th January 2024, this figure is also projected for 2025.
Meanwhile, this figure outperforms advanced economies such as the US, Europe, and Japan, with projections of 1.6 percent, 0.7 percent, and 0.9 percent respectively.
Even so, China’s economy in 2024 is projected to merely reach 4.5 percent. However, India’s economy is growing faster than Indonesia, namely at 6.4 percent.
Global economic projections indicate that world growth is predicted to slow down for three consecutive years, with this year expected to reach 2.4 percent, down from 2023 (2.6 percent).
Developing countries are also predicted to grow by only 3.9 percent, more than one percentage point below the average growth rate of the previous decade.
“Without a major correction, the 2020s will be a decade of wasted opportunities,” explained Chief Economist and Senior Vice President of the World Bank Group, Indermit Gill, quoted from the World Bank’s official statement.
Considering the strong trade relationship with China, the World Bank also estimates that their slower growth will have a negative impact on demand and activity across the Asia-Pacific Economic Cooperation (APEC).
This will put pressure on regional processing trade, particularly in countries with truly integrated sectors such as Malaysia and Vietnam. Commodity exports in the region, including Indonesia, Mongolia, Myanmar, and the Solomon Islands, will experience a decline in demand and prices.