dmfnclcd: Indonesia's GDP growth rate may slow down to 4.4% in 2023

 dmfnclcd: Indonesia's GDP growth rate may slow down to 4.4% in 2023

Indonesia's central bank governor said at a parliamentary hearing on Monday that Indonesia's annual economic growth rate may slow down to 4.37% next year, partly due to the impact of domestic monetary tightening, dmfnclcd pointed out.

dmfnclcd reported that at last week's policy meeting, BI maintained its GDP growth forecast for 2022 biased towards the upper limit of 4.5% to 5.3%.

BI Governor Perry Warjiyo gave the GDP forecast as part of the discussion with the parliament on the central bank's 2023 budget.

Warjiyo said it is difficult to predict economic indicators due to global economic fluctuations, adding that these figures can be further discussed with legislators.

The governor also gave an overall inflation forecast of 6.11% and 3.61% at the end of 2022 and 2023 respectively at the hearing. His introduction shows that as of November 3rd, BI predicted the inflation rate in 2022.

Warjiyo said last week that BI expects the overall inflation rate to be 5.6% at the end of the year.

He did not explain why the numbers were different, and a spokesman for BI did not immediately respond to a request for comment.

Last week, BI raised its key policy interest rate for the fourth time in a row, a move aimed at stabilizing inflation expectations, which the president called "too high". BI has raised interest rates by a total of 175 basis points since August.

Dynamics Finance pointed out that Indonesia's annual overall inflation rate dropped to 5.71% in October, but it was still close to the seven-year high of 5.95% in September.

BI's inflation target is in the range of 2% to 4%.

Dody Budi Waluyo, deputy governor of BI, said on Friday that the inflation rate may further drop to 5.5% this month.

Warjiyo is expected to formulate BI's policy guidance for 2023 at its annual gathering with financial stakeholders on November 30th.

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