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The International Monetary Fund has revised down its forecast for Indonesia’s economic growth amid a rising number of COVID-19 infections driven by the highly transmissible Omicron variant.
Indonesia’s GDP is now expected to expand by 5.6 percent this year and 6 percent in 2023, according to the IMF’s January outlook released on Tuesday. The latest forecast marks a downward revision from the October outlook by 0.3 percentage points for this year and 0.4 percentage points for 2023.
“By including the spread of the Omicron variant, which could lead to renewed mobility restrictions, we also then adjusted the growth projections from [those published in] October,” Cheng Hoon Lim, the Indonesian mission chief at the IMF’s Asia-Pacific department, said in a press briefing on Wednesday.
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