Indonesia’s economic growth is now projected to slow to 4.7 percent in 2025, down from the 5.1 percent forecast made just six months ago, according to the International Monetary Fund’s April 2025 World Economic Outlook. The IMF has also projected this 4.7 percent growth rate to hold steady in 2026.
Key points:
- 2025 real GDP growth revised down to 4.7% (from 5.1% in October 2024)
- 2025 inflation forecast reduced to 1.7% (from 2.5%)
- Current account deficit now forecast at -1.5% of GDP in 2025 (expanding from -1.2%)
- Unemployment forecast to fall slightly from 5.1% to be 5.0% in 2025
These revised forecasts come on the back of trade policy uncertainty coming out of the US. This has also impacted Indonesia’s regional neighbours with the Philippines seeing its growth forecast cut from 5.8 to 5.5 percent and Vietnam seeing a cut from 6.2 percent to 5.1 percent.
See also: Economy news