Indonesia optimistic about economic growth prospects in H3

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./.