World Bank: Indonesia's Economy Grows Better Than Malaysia, Philippines, Thailand, and Vietnam

Photo: Doc. Antara

JAKARTA - The World Bank estimates that among the major countries in the East Asia and Pacific region, only Indonesia will be able to grow in 2024 and 2025 at or above pre-COVID-19 pandemic levels.

"Among the larger countries, only Indonesia is expected to grow in 2024 and 2025 at or above pre-pandemic levels, while growth in Malaysia, the Philippines, Thailand, and Vietnam is expected to be below that level," said World Bank East Asia and Pacific Chief Economist, Aaditya Mattoo, in a virtual press conference in Jakarta, quoted from Antara, Tuesday, October 8.

This was stated in the World Bank's Report for the East Asia and Pacific Economic Update, October 2024 edition, which was released today.

In the report, the World Bank projects Indonesia's economic growth of 5 percent in 2024 and 5.1 percent in 2025. Meanwhile, Indonesia's average growth in the 2015-2019 period was recorded at 5 percent.

Indonesia's growth projection in the October 2024 edition of the report was revised up compared to the estimates in the April 2024 edition of the East Asia and Pacific Economic Update Report, which were 4.9 percent in 2024 and 5 percent in 2025.

Indonesia's economy in the future will benefit from, among other things, increased public consumption and investment as well as government spending.

The World Bank forecasts growth in the East Asia and Pacific region at 4.8 percent in 2024, slowing to 4.4 percent in 2025.

Growth in China, the region’s largest economy, is projected to ease from 4.8 percent this year to 4.3 percent in 2025, as it faces persistent weakness in the property market, low consumer and investor confidence, and structural challenges such as an aging population and global tensions.

East Asia and Pacific growth excluding China, meanwhile, is projected to pick up from 4.7 percent in 2024 to 4.9 percent in 2025, supported by rising domestic consumption, a recovery in goods exports, and a revival in tourism.

Furthermore, in the World Bank projection, Malaysia grows 4.9 percent in 2024 and 4.5 percent in 2025, the Philippines grows 6 percent in 2024 and 6.1 percent in 2025, Thailand grows 2.4 percent in 2024 and 3 percent in 2025, Vietnam grew 6.1 percent in 2024 and 6.5 percent in 2025.

Furthermore, Cambodia is expected to grow 5.3 percent in 2024 and 5.5 percent in 2025, Laos is projected to record growth of 4.1 percent in 2024 and 3.7 percent in 2025, while Myanmar is predicted to grow 1 percent in both 2024 and 2025.

Pacific Island countries are projected to grow by 3.5 percent in 2024 and 3.4 percent in 2025, as the tourism sector recovers. Investment growth remains weak in most of the region.