World Bank: Indonesia the Only Major Economy in Asia-Pacific to Surpass Pre-Pandemic Growth

Excluding China, the East Asia and Pacific region is expected to see moderate growth, increasing from 4.7% in 2024 to 4.9% in 2025. This is driven by stronger domestic consumption, a recovery in goods exports, and the return of tourism in various countries within the region.

In addition to Indonesia, other nations in the region have mixed growth prospects. Malaysia is projected to grow by 4.9% in 2024, but this will slow to 4.5% in 2025. The Philippines is expected to see steady growth at 6% in 2024, rising slightly to 6.1% in 2025. Meanwhile, Thailand’s growth is forecasted at 2.4% in 2024, increasing to 3% in 2025, while Vietnam is expected to grow from 6.1% in 2024 to 6.5% in 2025.

For smaller nations, the World Bank forecasts growth driven by domestic factors and the revival of tourism. Cambodia and Laos, for example, are projected to see continued growth, while Pacific Island countries are expected to benefit significantly from tourism, with a forecasted growth rate of 3.5% in 2024 and 3.4% in 2025.

Indonesia’s favorable economic outlook, underpinned by robust domestic demand and strategic investments, signals a promising future. The country’s economic policies, aimed at strengthening domestic consumption and government spending, are expected to sustain its growth momentum in the years ahead. (Uki Ruknuddin)