JAKARTA — Indonesia’s economy has rebounded from the recession as consumers and businesses resumed activities and a global economic recovery boosted exports.
The country’s gross domestic product (GDP) rose 3.69 per cent in 2021 from the previous year, driven largely by a rebound in investment, compared to a 2.07 per cent contraction the year before, reported Vietnam News Agency citing Statistics Indonesia (BPS).
The country’s economy grew by 5.02 per cent in the fourth quarter of 2021, which was roughly in line with the Indonesian government’s prediction and a touch faster than the 4.9 per cent expected in a Reuters poll.
Indonesia’s GDP is forecast to rise in 2022. However, the outlook for this year is clouded due to the Omicron variant of the coronavirus and rising COVID-19 cases.
“Indonesia’s economy rebounded strongly in the final quarter of last year, but the recovery is now entering a more difficult phase,” analyst Gareth Leather of UK-based Capital Economics research consultancy said.
The IMF in January downgraded Indonesia’s 2022 economic growth forecast to 5.6 per cent in 2022, from 5.9 per cent in its previous report, and 6 per cent in 2023 from 6.4 per cent.
— BERNAMA
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