INDEF Confident Indonesia's Economy Grows 4 Percent In Q4 2021 Effects Of Easing Activities

JAKARTA - Executive Director of the Institute for Development of Economics and Finance (INDEF), Tauhid Ahmad, estimates that the national economy in the fourth quarter of 2021 will grow above 4 percent year on year (YoY).

"I think growth will be around 4 percent because first, we are in the process of economic recovery due to easing social mobility and economic mobility", said Tauhid as quoted by Antara, Monday, December 27.

According to him, the products of the exported processing industry are also consistent in creating a trade balance surplus and encouraging economic growth in the fourth quarter of 2021.

"Public consumption improved somewhat in the fourth quarter of 2021 because people's economic activity began to increase, there was a slight increase in income and so on", he said.

Meanwhile, sectors that are predicted to grow high include the telecommunications sector, food and beverage accommodation, and the service sector. Furthermore, the manufacturing industry and the financial sector will grow at around 3 to 4 percent year on year.

According to him, community mobility has not returned to the way it was before the COVID-19 pandemic, so economic growth will be difficult to reach 5 percent year on year.

"It's a bit heavy above five percent, but I think this is a driving force that consumption in the fourth quarter of 2021 is better than the third quarter", added Tauhid.

Throughout 2021, Tauhid estimates that economic growth will range from 3.3 to 3.4 percent year on year.