Jakarta (VNA) – Indonesia's Institute for Development of Economics and Finance (INDEF) economist Eko Listiyanto projected the country's economy to grow 4.8% on an annual basis in 2024, lower than the macro assumption in the country’s 2024 State Budget of 5.2%.

According to INDEF's calculations, the 2024 economic growth is not high as the macro assumption because of the many difficult challenges, Listiyanto was quoted by local media as saying on December 6.

Indonesia’s national economic growth is forecast to slow down next year in line with slowing global economic growth due to the geopolitical crisis between Russia and Ukraine as well as between Israel and Palestine that is predicted to continue in 2024.

INDEF projected that the people's purchasing power will decline in 2024 and credit growth to the real sector will moderate due to Bank Indonesia's high benchmark interest rate and windfall from the rising commodity prices to year-end.

Meanwhile, Indonesia’s inflation in 2024 is predicted to reach 3.2%, above the macro assumption of the 2024 State Budget of 2.%, mainly contributed by rising food price volatility.

Listiyanto held that food demand in 2024 will increase due to the organisation of general elections, while food production might decrease due to the weather influence and declining credit to food business actors./.
VNA