Miracle needed for RI to become advanced economy by 2045: World Bank – Economy

he World Bank has thrown cold water on Indonesia’s dream of becoming a high-income economy by 2045 and outlined some of the challenges middle-income countries face in making such a leap.

According to government planning, achieving that target in time for Indonesia’s centenary of Independence would require annual gross domestic product growth of 6 to 7 percent over the next 20 years.

“For middle-income countries to have high income in decades rather than centuries, it would need a miracle,” World Bank Group chief economist Indermit Gill said on Monday at a seminar held at the Finance Ministry’s Dhanapala Building in Jakarta titled ASEAN Economic Development and the Middle-Income Trap.

While acknowledging the country’s strong economic growth, Gill pointed out that the road ahead would be tougher for Southeast Asia’s biggest economy.

Read also: Indonesian economy to steadily grow over next two years: World Bank

Since the 1970s, per-capita income in many middle-income countries has stagnated at a fraction of the United States level, according to the World Bank’s World Development Report 2024 titled Middle Income Trap that was published last month.

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The report found “that as countries grow wealthier, they usually hit a ‘trap’ at about 10 percent of annual US GDP per person – the equivalent of US$8,000 today.”

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