Indonesia optimistic about economic growth prospects in H3

Bank Indonesia's Governor Perry Warjiyo. (Photo: Antara/VNA)

Jakarta (VNA) - Bank Indonesia (BI) projects national economic growth in the third quarter of this year to reach 5.5% year-on-year, higher than that of the second quarter along with continuing improvement in the domestic economy.

Various indicators in July 2022 and BI's last survey results, such as consumer's trust, retail sale, and Manufacture's Purchasing Managers' Index (PMI), had continued to improve," BI’s Governor Perry Warjiyo said at a press conference on August 23.

According to Perry, the export performance until July 2022 remains positive amid the stagnation of the global economy that comes with the increasing risk of stagflation and persistently high financial market uncertainty.
 
For this year's second quarter, the realisation of gross domestic product (GDP) significantly grew 5.44% year-on-year, or far higher than the estimate and achievement in the previous quarter, with 5.01% year-on-year.

The high economic growth is attributed to the rising household consumption and high export performance, he explained.
 
The continuing improvement in the national economy is also reflected in the growth of the majority of the industries, especially processing, transportation and warehouse, as well as trade. Economic improvement is supported by all regions, especially Java, Sumatra, and Sulawesi-Maluku-Papua.
 
The Governor also predicted that the core inflation will increase by 4.15% this year due to soaring prices of non-state subsidised fuel.

The consumer price index in 2022 will grow at 5.24% driven by high global food and energy prices as well as supply shortages, he added./.