Indonesia's economic growth projection for the fourth quarter of 2022 will slow slightly compared to the third quarter of 2022Jakarta (ANTARA) - Indonesia’s economy will record moderate growth of around 5.3 percent year on year in the fourth quarter of 2022, the Center for Macroeconomics and Finance of the Institute for Development of Economics and Finance (Indef) has projected.
In the third quarter of 2022, Indonesia recorded economic growth of 5.72 percent year on year supported by strong domestic economic fundamentals.
"Indonesia's economic growth projection for the fourth quarter of 2022 will slow slightly compared to the third quarter of 2022. Growth will be recorded at around 5.3 percent," said head of the Center for Macroeconomics and Finance, Rizal Taufikurrahman, when contacted by ANTARA here on Wednesday.
He listed several factors that could slow the economy in the fourth quarter, including the slowdown in the economic cycle that usually occurs in the fourth quarter and the base effect at the end of the year, which is high so the growth rate would be low.
In addition, the business cycle has also experienced a slowdown or decline, especially on expectations at the end of the year.
He predicted that inflation will reach 6.45 percent by the end of 2022, mainly influenced by the movement of volatile food prices from the horticulture sector.
He cited the increase in transportation costs due to the fuel price hike as well as the inflation component of volatile food prices as the causes for high inflation.
“Such as shallots, garlic, red chilies, beef, and chicken," said Taufikurrahman.
In facing 2023, when a global recession is expected, the relevant parties will need to make efforts to increase the productivity of the national economy, especially the manufacturing industry, as well as exports of strategic energy and food commodities, he said.
In addition, fiscal efficiency will also need to be improved to grow an effective economy, as well as spending fiscally to improve performance, which directly impacts the economy.
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Translator: Muhammad Heriyanto, Katriana
Editor: Sri Haryati
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