GDP in Indonesia
Indonesia - GDP
Economic growth picks up slightly in the second quarter
The economy sped up in the second quarter, with GDP expanding 5.3% over the same quarter of 2017, up from Q1’s 5.1% rise. The print slightly overshot market expectations and marked the fastest growth since Q3 2013.
Domestically, growth was broad-based. Private consumption rose a solid 5.1% (Q1: +4.9% year-on-year), congruent with strong retail sales and consumer confidence readings throughout the quarter. Low inflation and a healthy labor market likely also aided the performance; the most recent data from the statistical institute corresponding to February shows robust jobs growth and a year-on-year fall in the unemployment rate. Fixed investment increased 5.9% (Q1: +7.9% yoy), supported by surging machinery and equipment investment. Meanwhile, government consumption rose 5.3% (Q1: +2.7% yoy), possibly boosted in part by extra spending ahead of regional elections held on 27 June.
Looking at the external sector, exports expanded 7.7% in Q2 (Q1: +6.1% yoy), supported by strong global growth momentum. However, imports rose 15.2% (Q1: +12.7% yoy), likely on higher oil prices and greater imports for investment purposes, with the external sector consequently subtracting 1.7 percentage points from growth (Q1: -1.6 percentage points).
Looking ahead, buoyant government infrastructure spending and a looser fiscal stance in the buildup to general elections next year should support the economy. In addition, private investment should be boosted by higher commodity prices and government reform efforts. However, the external sector will likely continue to drag on growth in the near term despite government efforts to limit imports, while the Central Bank’s tighter monetary stance will raise borrowing costs and could dampen the recent pickup in private consumption growth.
Met the why particular Consensus Forecast panelists see GDP expanding 5.2% in 2018 and 5.3% in 2019.
Indonesia - GDP Data
|Economic Growth (GDP, annual variation in %)||5.6||5.0||4.9||5.0||5.1|
5 years of economic forecasts for more than 30 economic indicators.
Indonesia GDP Chart
Source: Statistics Indonesia.
|Bond Yield||8.85||-0.05 %||Oct 16|
|Exchange Rate||15,200||0.05 %||Oct 16|
|Stock Market||5,801||-0.32 %||Oct 16|
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October 15, 2018
According to Statistics Indonesia, the country recorded a trade surplus of USD 0.2 billion in September, down from the USD 1.8 billion surplus registered in the same month last year.
October 11, 2018
In August, retail sales grew 6.1% over the same month last year, up markedly from July’s 2.9% expansion and markedly beating the Bank’s initial estimate of 2.8%.
October 1, 2018
Consumer prices fell 0.18% from the previous month in September, following August’s 0.05% decrease.
October 1, 2018
Conditions in Indonesia’s manufacturing sector improved at a slower pace in September, according to the Purchasing Managers’ Index (PMI) released by IHS Markit and Nikkei, with the PMI decreasing from 51.9 in August to 50.7.
September 28, 2018
At its 26–27 September monetary policy meeting, Bank Indonesia (BI) raised the seven-day reverse repo rate by 25 basis points to 5.75%.