Jakarta (VNA) – The International Monetary Fund (IMF) has raised its outlook for Indonesia’s economic growth, forecasting that Southeast Asia’s largest economy will expand by 5.1% in 2026.
The revised forecast is higher than the 4.9% estimate released by the IMF in October last year.
According to the IMF Executive Board’s Article IV Consultation, the Indonesian economy has shown resilience amid adverse shocks. Growth is expected to remain steady at 5.0% in 2025 and 5.1% in 2026, despite a challenging external environment, reflecting support from fiscal and monetary policies.
Headline inflation is well anchored and projected to converge towards the midpoint of the target range. The current account deficit would remain well contained in 2025-26, with comfortable reserves.
IMF Executive Directors welcomed Indonesia’s economic resilience and track record of prudent policies despite external challenges. Noting downside risks from global uncertainty, they emphasised the importance of preserving longstanding policy credibility, protecting policy space, and accelerating structural reforms to ensure strong, sustainable and inclusive growth.
Indonesia’s central bank BI said the IMF’s assessment is in line with the country’s domestic outlook. BI projects the country’s GDP to grow by around 5.3% in 2026, supported by stronger consumption and rising investment./.
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