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The World Bank has cut its projection for Indonesia's 2022 gross domestic product (GDP) growth from 5.2 percent to 5.1 percent, in response to economic shocks resulting from the Ukraine war and other sources of global economic distress.
The bank said in a report on Tuesday that monetary tightening in the United States and an economic slowdown in China also threatened the already uneven global recovery from the pandemic. In the worst-case scenario, the bank projected that Indonesia's economy could grow 4.6 percent this year.
The revision was in line with the bank’s overall GDP growth forecast for developing East Asia and Pacific (EAP) countries, which it said would slow by 0.4 percentage points to 5 percent and could fall further to 4 percent growth if conditions worsened.
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