A view of Jakarta, Indonesia (Photo: Reuters)Jakarta (VNA) – The InternationalMonetary Fund (IMF)’s Mission Chief for Indonesia Luis E Breuer has saidfavourable demographic trends provide a unique window of opportunity for theSoutheast Asian country’s economic growth.
According to Breuer, the number of workers inIndonesia is growing faster than that of dependents, providing strong tailwindsto the economy.
He said the demographic trends are expected toincrease Indonesia’s annual real GDP growth by close to one percentage point inthe 2020-2050 period.
Indonesia is among a few Asian countries set tobenefit from a boost to GDP per capita owing to favourable demographics.
McKinsey, a global leading consulting group inbusiness strategy, estimated that Indonesia’s consumer class could grow by 90million by 2030.
Such an increase would represent thethird-largest expansion of consumers in the world, after China and India,providing enormous economic opportunities.
The labour force is projected to increasesubstantially as Indonesia is undergoing a demographic transition with asizable decline in infant mortality and a reduction in fertility rates.
This has led to an increase in the working-agepopulation, defined as persons 15 to 64 years old, of 1.6 percent or 2.5million people a year in the 2000-2016 period.
Indonesia’s population continued to expandrapidly in this period with annual average growth of 1.3 percent. The country’stotal population is estimated to reach 296 million by 2030.-VNA
VNA
