OECD maintains Indonesia growth outlook for 24-25

The Organisation for Economic Co-operation and Development (OECD) has maintained its growth projections for Indonesia’s economy in its economic outlook released on Thursday.

The Paris-based organisation expects Indonesia to grow by 5.1 per cent in 2024, and 5.2 per cent in 2025, the same forecasts made in its earlier Interim Report February 2024.

“GDP growth is projected to be 5.1 per cent in 2024 and 5.2 per cent in 2025. Domestic demand remains driven by private consumption and gross capital formation growth will strengthen in 2024 and 2025.” OECD report read.

“Headline inflation is expected to fall slightly below 3 per cent in 2024 and remain unchanged in 2025, within the central bank’s revised target corridor (1.5-3.5%). Heightened global uncertainty and lower commodity prices have reduced nominal merchandise exports. Although the current account deficit is growing, international reserves are expected to be broadly stable.