Jakarta (VNA) – Indonesia's Institute for Development ofEconomics and Finance (INDEF) economist Eko Listiyanto projected the country'seconomy to grow 4.8% on an annual basis in 2024, lower than the macroassumption in the country’s 2024 State Budget of 5.2%.

According to INDEF's calculations, the 2024 economic growth is not high as themacro assumption because of the many difficult challenges, Listiyanto wasquoted by local media as saying on December 6.

Indonesia’s national economic growth is forecast to slow down next year in linewith slowing global economic growth due to the geopolitical crisis betweenRussia and Ukraine as well as between Israel and Palestine that is predicted tocontinue in 2024.

INDEF projected that the people's purchasing power will decline in 2024 andcredit growth to the real sector will moderate due to Bank Indonesia's highbenchmark interest rate and windfall from the rising commodity prices to year-end.

Meanwhile, Indonesia’s inflation in 2024 is predicted to reach 3.2%, above themacro assumption of the 2024 State Budget of 2.%, mainly contributed by risingfood price volatility.

Listiyanto held that food demand in 2024 will increase due to the organisationof general elections, while food production might decrease due to the weatherinfluence and declining credit to food business actors./.