Indonesia’s budget for 2025 envisages a slight decline in the fiscal deficit to 2.5% of GDP, down from 2.7% this year. The announcement will provide some reassurance that president-elect Prabowo is committed to a prudent fiscal policy. It follows concerns earlier in the year that he would attempt to sideline Indonesia’s strict budget rules.
Meanwhile, data published over the past week show that inflation fell back to target in the Philippines and Korea. This supports our view that both countries will lower interest rates at their October meetings.
What will the US election mean for the Asia growth outlook? Will China’s economy overtake the US? Will India fulfil its growth potential? We’re tackling these issues and more in our Asia roundtable in London on Tuesday, 24th September. If you’d like to attend, click here.
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