Illustrative image (Photo: https://indonesiaexpat.id/)Jakarta (VNA) –Indonesia has regained upper-middle income rank thanks to its strongpost-pandemic recovery.
Speaking at a cabinet meetingon July 3, Indonesian President Joko Widodo said that the World Bank Group hasplaced the country in the upper-middle income band of countries. Indonesia reclaimed the rankthis year as gross national income per capita climbed to 4,580 USD. It’s animprovement from the previous reading of 4,140 USD, which had kept it in thelower-middle income status for the second straight year in 2022 due to the COVID-19 pandemic's impacts.
The World Bank’s latestrankings will bolster Indonesia’s ambition to become a high-income country by2045, the centerpiece of outgoing President Joko Widodo’s economic platform.
Indonesia continued itsstrong post-pandemic recovery and its Gross Domestic Product (GDP) grew by 5.3%in 2022, the fastest rate in nine years.
However, Indonesian PresidentWidodo still warned of the risks that Indonesia faces during the second half of2023 such as unstable global environment and geopolitical tensions that mayimpact the country's economy and trade activities.
President Widodo also warnedthat global interest rates and inflation are still at relatively high levels.In addition, fragmentation in global trade appears, hindering tradecooperation.
The World Bank classifiesfour economic groups based on income from July 2022 to June 2023 as low-income(1,135 USD), low-middle-income (1,136 to 4,465 USD), and high-middle income(4,446 to 13,845 USD), and high income (over 13,845 USD)./.
