Economy Grows 5.47%, but CORE Indonesia Warns of Weakening Public Purchasing Power
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Indonesia's economy is reported to have grown 5.47 percent. This figure shows that national economic activity is still moving. However, the Center of Reform on Economics (CORE) Indonesia warns that this growth may not necessarily be felt by all members of society.
Purchasing power is the ability of people to buy goods and services with the money they have. When purchasing power weakens, people usually buy fewer necessities, postpone spending, or choose cheaper goods. This can happen even when national income rises, because increases in prices and income do not always go hand in hand.
CORE Indonesia believes that economic growth needs to be viewed together with other indicators, such as household income, levels of consumption, and the condition of basic commodity prices. Economists consider household consumption to be one of the important factors in Indonesia's economy. If public consumption slows, overall economic growth could also be affected.
Thus, the growth figure of 5.47 percent provides a positive picture of the national economy. Nevertheless, the warning from CORE Indonesia serves as a reminder that the everyday conditions of the public still need attention. The government and business actors are expected to keep monitoring purchasing power so that economic growth can be felt more evenly.
Sources: Head Topics
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