(MENAFN) Bank Indonesia forecasts the country’s economy will expand by 5.1 percent in 2025, slightly higher than last year’s 5.03 percent, driven by consumer spending, exports, and government expenditure, Governor Perry Warjiyo stated on Wednesday.

Warjiyo highlighted that shipments of mining products, crude palm oil, agricultural goods, and fisheries are expected to increase, supporting economic growth in the latter half of the year. Government spending is also projected to remain robust, stimulating both demand and investment.

"Economic growth in 2025 is forecast at about 5.1 percent, and it could be higher," Warjiyo said at a press briefing.

He also cautioned that global financial market uncertainties pose near-term risks, emphasizing the need to protect domestic resilience against external shocks. On the home front, Warjiyo encouraged banks to enhance lending performance, noting that credit growth slowed to 7.03 percent year-on-year in July from 7.77 percent in June.

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