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World Bank downgrades Indonesia GDP growth outlook for 2026

Indonesia’s 2026 growth forecast has been trimmed to 4.7 percent from 4.8 percent, while 2027 is projected at 5.2 percent, in the World Bank’s April Economic Update.

The downgrade is marginal, pointing to broadly stable expectations despite softer near-term momentum.

Growth reached 5.1 percent in 2025, continuing a steady expansion trend across recent years.

Indonesia remains one of the region’s more stable economies, though its growth outlook trails Vietnam and sits closer to Malaysia.

TABLE: GDP growth rates, World Bank Economic Update April 2026

Apr 2026 forecastOct 2025 forecast
2015–192020–2420252026202720252026
Cambodia8.03.14.83.94.94.84.3
Indonesia5.03.45.14.75.24.84.8
Lao PDR6.62.74.53.53.73.73.6
Malaysia4.93.15.24.44.44.14.1
Myanmar6.4−3.3−1.32.04.0−1.83.0
Philippines6.63.04.43.75.65.35.4
Thailand3.40.72.41.32.32.01.8
Timor-Leste5.21.04.54.14.04.03.4
Vietnam7.15.28.06.37.66.66.1
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