THE ASIAN Development Bank (ADB) has cut its projection for Indonesia’s economic growth for 2022.
According to ADB’s Senior Country Economist, Henry Ma, said Indonesia’s economic growth next year will only be 4.8% on an annual basis (yoy). This projection is lower than ADB’s previous prediction of 5.0% yoy.
“We estimate that in 2022 the slowdown will continue, so that the projected growth for next year is at 4.8% yoy. However, we will continue to monitor and produce new analyzes every year,” he explained, Wednesday (9/22).
Henry added that the reduction in economic growth next year cannot be separated from the slowdown in economic recovery that occurred this year. This happened because of the second wave of COVID-19 at the beginning of the third quarter of 2021.
In fact, the agency estimates that economic growth throughout 2021 will only be 3.5% yoy. Again, this projection is lower than the prediction expressed in April 2021, which was 4.5% yoy and the prediction in July 2021 which was 4.1%.
Now, the risk of future economic growth is still related to COVID-19, namely the fear of a new variant of COVID-19, the slow progress of vaccination, and also the effectiveness of the COVID-19 vaccine used.
In addition, in the future, there will still be several storm threats that will be faced by Indonesia. In ADB’s view, the stumbling block can be seen from geopolitical uncertainty, disruption of global supply chains, and turbulence in financial markets due to the planned tightening of monetary policy in the United States (US).
In fact, in the medium-long term, there are still several things that threaten the country, such as natural disasters, climate change, and the issue of food supply. [sources/photo special]