In other words, it will be slower compared to the GDP (gross domestic product) growth in the first quarter of 2022, which reached 5.01 percent yoy. Overall, the GDP growth for 2022 will stay within a range of 4.5-5.0 percent…Jakarta (ANTARA) - The Indonesian economy is expected to record a growth of 4.5–5.0 percent year-on-year (yoy) for the second quarter of 2022, executive director of the Center of Reform on Economics (CORE), Mohammad Faisal, said.
"In other words, it will be slower compared to the GDP (gross domestic product) growth in the first quarter of 2022, which reached 5.01 percent yoy. Overall, the GDP growth for 2022 will stay within a range of 4.5–5.0 percent, or still align with the forecast we have conveyed in the CORE Economic Outlook 2022,” Faisal informed here on Monday.
The COVID-19 pandemic is no longer limiting public mobility. However, inflation in the first half, which swelled to 3.19 percent year-to-date, far exceeding the 0.74 percent rate recorded in the same period the previous year, hindered public expenditure, he explained.
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"Moreover, the biggest contribution to the inflation came from foodstuffs, which make up the biggest basket of middle-to-low income people's consumption," he said.
The sluggish public consumption was reflected in the real sales index (IPR) in the second quarter of 2022, which fell to 8.96 percent from 12.46 percent in the previous quarter.
The basic commodity price hike and a potential recession in several countries, including the markets for Indonesia's exports, will have a small impact on the Indonesian economy if the government and the central bank make accommodative policies to maintain domestic economic growth, he said.
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The government should keep the inflation rate below 5.0 percent in 2022 by controlling inflation fueled by administered prices such as fuel oil and electrical power.
"If Bank Indonesia is relatively more accommodative to economic recovery this year, the external pressure fueled by the global recession will have a small impact," he said.
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Translator: Sanya Dinda S, Suharto
Editor: Fardah Assegaf
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