Publication: Indonesia Economic Prospects, June 2022: Financial Deepening for Stronger Growth and Sustainable Recovery
Date
2022-05-31
ISSN
Published
2022-05-31
Author(s)
World Bank
Abstract
Indonesia’s economic recovery from
the Corornavirus (COVID-19) pandemic comes amidst an
increasingly challenging global environment. Indonesia’s
growth accelerated at the end of 2021 as the country stepped
off from a devastating Delta wave in July-August, ending the
year with 3.7 percent growth. The momentum carried into the
first quarter of 2022 with the economy growing at 5 percent
(yoy) and absorbing a short and sharp increase in
Omicron-related COVID cases. Growth drivers since end 2021
have rebalanced gradually from exports and public
consumption towards private consumption and investment.
Since February, the war in Ukraine has disrupted the global
economic environment with rising commodity prices and
de-risking in global financial markets. The positive
terms-of-trade effect has benefited Indonesia in the
near-term through higher export and fiscal earnings. But the
country is starting to feel the pressures of rising prices
and tightening external finance.
Citation
“World Bank. 2022. Indonesia Economic Prospects, June 2022 : Financial Deepening for Stronger Growth and Sustainable Recovery. © Washington, DC: World Bank. http://openknowledge.worldbank.org/handle/10986/37584 License: CC BY 3.0 IGO.”