JAKARTA, April 26 (Xinhua) -- Indonesia's economy is expected to increase by 5 percent in 2024 and 2025, primarily coming from domestic private consumption and investment, according to Asian Development Bank (ADB) projections.
"The combination of strong private consumption, public infrastructure spending and increased investment will maintain gross domestic product growth rates," said ADB Chief Economist Albert Park on Friday.
Better supply side management and restrained inflation expectations are predicted to lead inflation to drop from 3.7 percent in 2023 to 2.8 percent in 2024 and 2025.
It is anticipated that the well-run general election in February 2024 will boost investor confidence and boost company confidence.
Still, there's a chance that the Fed will keep interest rates high in the face of geopolitical uncertainty and the effects of climate change, which might disrupt global value chains and precipitate a more severe fall in commerce, Park added.
Because of the cautious estimates made by the government, ADB expects revenues to surpass expectations and lower the deficit.
In 2024, spending is projected to increase by 6.1 percent while income is expected to increase by 1 percent. ■