Indonesia's COVID-19 Vaccination and Economic Resilience Strategy slide image

Indonesia's COVID-19 Vaccination and Economic Resilience Strategy

National Economic Recovery Continue to Accelerate Strong GDP Growth¹ 8.0 QoQ YoY 7.07 5.72 5.02 5.01 3.72 1.5506 1.81 5.05 4.01 3.14 4.01 4.21 3.19 3.09 4.20 3.06 B.31 (1.730.36) (1.81 0.30) (1.7.41) (1.69.52) (1.742.41) (0.42 0.96) (419) (0.96) 3.83.27 3.7431 (2.07) (0.16) 6.0 4.0 2.0 0.04 0.0 -2.0 -4.0 -6.0 -8.0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 2014 2015 2016 2017 2018 2019 Favourable GDP Growth Compared to Peers² 10.00 % yoy 5.00 2020 2021 2022 7.40 6.70 5.80 5.30 0.00 3.20 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 -5.00 National economic performance in Indonesia continued to gain momentum in Q3-2022 despite global economic moderation and rising inflation at home. This was confirmed by domestic economic growth accelerating to 5.72% (yoy) in the reporting period from 5.45% (yoy) in the second quarter of 2022. Solid economic performance was supported by ongoing improvements in terms of domestic demand, coupled with persistently strong exports. National economic improvements were also reflected by the sound performance of various economic sectors and all regions of the archipelago. Moving forward, economic growth is expected to remain intact on the back of domestic demand in line with improving mobility and the ongoing completion of national strategic projects (PSN). Notwithstanding, the impact of global economic moderation on export performance and potentially restrained household consumption due to rising inflation demand vigilance. In terms of spending, nearly all components recorded positive growth in the reporting period. Household consumption expanded 5.39% (yoy) despite moderating from 5.51% (yoy) in the previous period. Strong growth was consistent with increasing public mobility, the limited impact of fuel price adjustments as well as disbursements of social assistance (bansos) and energy subsidies. Investment improved to 4.96% (yoy), primarily driven by non-building investment in machinery and equipment. Meanwhile, government consumption experienced a 2.88% (yoy) contraction due to lower procurement spending for Covid-19 handling and the national economic recovery program. Exports continued to increase, with growth reaching 21.64% (yoy), underpinned by persistently strong demand in Indonesia's main trading partners, together with policy to accelerate exports of crude palm oil (CPO). Import growth was also high at 22.98% (yoy) in the reporting period to meet solid domestic and export demand. Nearly all economic sectors expanded in the third quarter of 2022, primarily driven by the Manufacturing Industry, Mining, Agriculture as well as Wholesale and Retail Trade. Furthermore, Transportation and Storage as well as Accommodation and Food Service Activities also posted strong growth on greater public mobility and a surge of arrivals by international travellers. Regionally, economic improvements were bolstered by growth in all regions of Indonesia, led by Sulawesi-Maluku-Papua (Sulampua), followed by Bali-Nusa Tenggara (Balinusra), Java, Kalimantan and Sumatra. 2022 Growth Projection *) 2022 Budget Bank Indonesia Institutions GDP growth 4.8-5.5 4.5-5.3 -10.00 Bulgaria India Colombia Indonesia IMF (WEO, October 2022) 5.3 -15.00 Philippines Consensus Forecast (December 2022) 5.2 1. 2. Source: Central Bureau of Statistics of Indonesia (BPS), ** Including non-profit household consumption Source: World Economic Outlook Database - July 2022; * indicates estimated figure World Bank (GEP, June 2022) *) Consensus Forecast number will be given later ADB (ADO, December 2022) 엄업 5.1 5.4 69
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