Grant Thornton Predicts Indonesia's GDP Growth at 5.7% for 2024
Jakarta. Business consultant firm Grant Thornton Indonesia, in collaboration with Katadata Insight Center, forecasts a robust surge in Indonesia's Gross Domestic Product (GDP) growth, ranging between 5.3 percent and 5.7 percent for the year 2024. This upswing is attributed to heightened consumer spending linked to both the electoral process and the upcoming Eid al-Fitr holiday.
Johanna Gani, CEO of Grant Thornton Indonesia, emphasized the pivotal role of the rapidly expanding middle class in propelling this growth. She anticipates a notable uptick in consumption across various sectors including logistics, transportation, infrastructure, media, textiles, garments, renewable energy, healthcare, and technology throughout 2024.
President Joko "Jokowi" Widodo has set a target of 5.2 percent economic growth in 2024, surpassing the 5.05 percent growth achieved in 2023.
In contrast, the International Monetary Fund (IMF) projects Indonesia's growth rate to reach 5 percent for both the present and upcoming years. Meanwhile, the World Bank forecasts a slight decline in growth for 2024 and 2025, with rates anticipated to settle at 4.9 percent annually.
Looking globally, Johanna Gani anticipates a stable 3.1 percent growth in the global economy for 2024. However, she cautions that this growth will likely be moderate overall due to varying performances among countries and ongoing conflicts.
Amidst a change in leadership with President Joko Widodo, Johanna notes a cautious stance among certain investors, despite sustained interest from foreign investors, particularly in government infrastructure projects.
Furthermore, the emergence of the "New Era of Nickel" in Indonesia's mining sector is expected to gain traction, offering promising investment prospects, especially in light of the electric vehicle (EV) revolution.
The new government is expected to maintain a focus on stability and economic development while upholding existing policies. Grant Thornton Indonesia has identified five provinces—North Maluku, Central Sulawesi, East Kalimantan, West Java, and Riau—as focal points for 2024, given their unique economic landscapes and potential for diverse investment opportunities.
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