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Indonesia shines amid global gloom with forecast-beating GDP
Indonesia’s accelerated growth in the second quarter is a bright spot in an otherwise bleak global performance, and while analysts project further strong growth in the second half, the finance minister has cautioned about keeping tabs on external inflationary pressures.
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A worker makes coconut charcoal briquettes in Lemo-Lemo village, Central Mamuju, West Sulawesi, in June 2022. The briquettes are sold to factories and restaurants at Rp 6,500 (44 US cents) per kilogram. (Antara/Akbar Tado)
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s major economies face downturns due to high inflation, choked supply chains and geopolitical tensions, Indonesia stands out as a bright spot, its latest GDP growth handily exceeding economists’ expectations.
Indonesia’s gross domestic product grew 5.44 percent year-on-year (yoy) in the second quarter (Q2), accelerating significantly from Q1 growth of 5.01 percent, as the Ramadan-Idul Fitri holiday season helped jump-start consumer spending, Statistics Indonesia (BPS) said in a report published on Friday.
Ahead of the BPS report, forecasts from state-owned Bank Mandiri and financial research firm Moody Analytics had respectively expected the country’s GDP growth to reach 5.17 percent and 3.2 percent.
The country’s Q2 GDP grew 3.72 percent quarter-on-quarter to beat Bank Mandiri’s estimate of 3.44 percent, while growth was up 5.23 percent yoy in the first half of the year.
Market indicators also reflected the increase in Q2 economic activities, with real retail sales growing 8.67 percent yoy, corporate income tax 19.77 percent yoy and industrial electricity consumption up 13.37 percent yoy.
“[Growth] was driven by increased consumption during Ramadan and Idul Fitri,” BPS head Margo Yuwono said in Jakarta on Friday.
Read also: GDP up 5.01% in Q1 on strong exports, higher mobility
