The Financial Sector Stability COMMITTEE (KSSK) revealed that Indonesia‘s economic growth by the end of 2024 could reach 5.1%.
Responding to this, the Economic Director of the Center of Economic and Law Studies (Celios), Nailul Huda, said that in order to achieve growth of 5.1% by the end of 2024, the key to economic growth lies in the fourth quarter and must be able to rebound.
“If the end-of-year bonus really becomes a lever for public consumption, I think the end-of-year economic growth could be above 5 percent. But indeed in the third quarter our economy is “sluggish” with purchasing power weakening, many traders are unemployed,” said Huda when contacted at Friday (18/10).
Therefore, in general, Huda expressed that he was not optimistic that annual growth would reach 5 percent.
“Growing at 4.8-4.9% in the end is probably the most possible,” added Huda.
Not Touching 5.1%
In line with Huda, Executive Director of the Center of Reform on Economics (CoRE), Mohammad Faisal also revealed that economic growth at the end of 2024 will not reach 5.1%.
“Even though if we look at the first semester, the average has reached 5.05 percent, if I’m not mistaken. But we predict, we predict that in the third quarter, the fourth quarter could slip to below 5 percent. There is a possibility of that,” said Faisal .
Faisal believes that economic growth at the end of 2024 will not reach 5.1% due to several factors such as declining purchasing power and the manufacturing industry which is currently still experiencing contraction.
“Even though it is the largest sector contributing to GDP in terms of business, it is also the largest sector besides household consumption,” said Faisal. (Fal/M-4)
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