Morgan Stanley cuts projection for Indonesia’s economic growth

Morgan Stanley cuts projection for Indonesia’s economic growth. - Illustrative image (Source: world-today-news.com/)

Jakarta (VNA) - Morgan Stanley has cut its projection for Indonesia’s economic growth to 4.5 percent year-on-year from 6.3 percent in 2021, and to 5.4 percent from 5.5 percent in 2022.

In its report, Morgan Stanley said Indonesia’s economic recovery will be driven by domestic and foreign demand.

According to Morgan Stanley’s Asia Economist Deyi Tan, Indonesia’s economic growth in 2021 could not be separated from the achievement of economic growth per quarter.

In the first quarter of 2021, Indonesia’s economic growth was still recorded at negative 0.7 percent year-on-year.

Morgan Stanley predicts that economic growth of the Southeast Asian country could soar to 6.5 percent year-on-year in the second quarter, but will decline slightly to 6.3 percent, and 6.2 percent in the third and fourth quarter of 2021, respectively.

Morgan Stanley also revised its projection for economic growth in ASEAN member countries to 5.4 percent from 7.4 percent in 2021./. 

VNA