World Bank projects Indonesia’s growth to slow to 5 % by 2026

The World Bank released a forecast for Indonesia’s economic performance. It projects that annual GDP growth will decline to about 5 percent by 2026. The slowdown follows a period of faster expansion in previous years. Analysts attribute the deceleration to maturing markets and external pressures. The bank notes that structural reforms could mitigate the slowdown. Indonesian policymakers are expected to address investment and productivity gaps. Investors are watching the outlook for signs of fiscal stability. The forecast will inform upcoming budgetary and development strategies.