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The Bank Indonesia, Along With The World Bank And The International Monetary Fund, Projects That Indonesia's Growth Will Reach Only 5.1% In 2025

The World Bank has projected that Indonesia's economic growth will experience stagnation in 2024 and 2025. According to the Global Economic Prospects report published on January 17, 2025, Indonesia's economy is expected to grow by 5.1% in both 2024 and 2025. 

While still maintaining a growth rate around 5%, the World Bank cautions that in the coming years, developing countries will require a "new playbook" that emphasizes domestic reforms to accelerate private investment, deepen trade relationships, and promote more efficient use of capital, talent, and energy. 

"Most of the forces that once facilitated their rise have dissipated. Instead, daunting obstacles have emerged: high debt burdens, weak investment and productivity growth, and rising costs associated with climate change," stated Indermit Gill, Chief Economist and Senior Vice President for Development Economics at the World Bank, as quoted on January 20, 2025. 

The World Bank emphasizes that developing countries are now more crucial to the global economy than they were at the beginning of this century. 

"They account for approximately 45% of global GDP, up from 25% in 2000. Their interdependence has also increased: over 40% of their goods exports are directed to other developing countries, double the share in 2000," the report revealed. 

Developing nations have also become a significant source of global capital flows, remittances, and development aid for other developing countries: between 2019 and 2023, they contributed 40% of global remittances, an increase from 30% in the first decade of the century. 

In alignment with the World Bank, the International Monetary Fund (IMF) in its January 2025 World Economic Outlook predicts that Indonesia's economic growth will only reach 5.1% this year. The projections from these two international organizations are consistent with those of Bank Indonesia (BI), which estimates that economic growth in 2024 will be slightly below the midpoint of 4.7% to 5.5%, specifically around 5.1%. 

Tag: Bank Indonesia International Monetary Fund World Bank