World Bank, IMF expect RI economy to grow 5.1% this year – Economy

he International Monetary Fund (IMF) and the World Bank have both kept their projections for Indonesia’s 2025 gross domestic product (GDP) growth unchanged while flagging long-term challenges for emerging economies.

The World Bank’s latest update of its flagship Global Economic Prospects report, published last week, projects 5.1 percent GDP growth for Indonesia, unchanged from the forecast in the previous edition.

“The next 25 years will be a tougher slog for developing economies than the last 25,” said World Bank Group chief economist Indermit Gill on Thursday in a press statement released together with the report.

The report estimated that growth in developing economies was expected to hold at about 4 percent over the next two years, which would mark a weaker performance than the pre-pandemic level.

Gill said developing economics would need “a new playbook” involving domestic reforms to expedite private investment and promote the more efficient use of capital, talent and energy.

“Most of the forces that once aided their rise have dissipated. In their place have come daunting headwinds: high debt burdens, weak investment and productivity growth, and the rising costs of climate change,” said Gill.

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Accounting only for 25 percent of the global GDP at the turn of the century, the World Bank detailed that developing economies were now responsible for 45 percent of the pie.

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