IMF: Demographic trends boost Indonesia’s economic growth hinh anh 1A view of Jakarta, Indonesia (Photo: Reuters)

Jakarta (VNA) – The International Monetary Fund (IMF)’s Mission Chief for Indonesia Luis E Breuer has said favourable demographic trends provide a unique window of opportunity for the Southeast Asian country’s economic growth.

According to Breuer, the number of workers in Indonesia is growing faster than that of dependents, providing strong tailwinds to the economy.

He said the demographic trends are expected to increase Indonesia’s annual real GDP growth by close to one percentage point in the 2020-2050 period.

Indonesia is among a few Asian countries set to benefit from a boost to GDP per capita owing to favourable demographics.

McKinsey, a global leading consulting group in business strategy, estimated that Indonesia’s consumer class could grow by 90 million by 2030.

Such an increase would represent the third-largest expansion of consumers in the world, after China and India, providing enormous economic opportunities.

The labour force is projected to increase substantially as Indonesia is undergoing a demographic transition with a sizable decline in infant mortality and a reduction in fertility rates.

This has led to an increase in the working-age population, defined as persons 15 to 64 years old, of 1.6 percent or 2.5 million people a year in the 2000-2016 period.

Indonesia’s population continued to expand rapidly in this period with annual average growth of 1.3 percent. The country’s total population is estimated to reach 296 million by 2030.-VNA