Indonesia’s 2023 GDP growth may slow to 4.4%: central bank governor

Headquarters of Bank Indonesia in Jakarta, Indonesia. Photo: (East Asia Forum)

Jakarta (VNA) - Indonesia's annual economic growth may slow to 4.37% next year, partly due to the impact of domestic monetary tightening, the country's central bank (BI) governor Perry Warjiyo told a parliamentary hearing.

In last week's policy meeting, BI maintained the 2022 GDP growth forecast between 4.5% and 5.3%.

Warjiyo said predicting economic indicators was difficult due to volatility in the global economy, adding that the numbers could be discussed further with lawmakers.

The governor also gave a headline inflation forecast of 6.11% for this year and 3.61% for 2023 at the hearing. His presentation showed the figure for 2022's inflation was BI's forecast as of November 3.

Warjiyo last week said BI expected a headline inflation rate of 5.6% at the end of the year. Last week, BI raised its key policy rate for a fourth consecutive monthly meeting in a move aimed at anchoring inflation expectations, which the governor said was "too high". In total, BI has lifted interest rates by 175 basis points since August.

Earlier on November 18, BI deputy governor Dody Budi Waluyo said inflation may decelerate further this month to 5.5%. BI is expected to lay out its policy guidance for 2023 at an annual gathering with financial stakeholders on November 30./.