Indonesia Economic Outlook
July 17, 2018The latest batch of indicators suggests that the economy grew at a broadly stable pace in the second quarter. In June, the manufacturing PMI declined modestly from the almost two-year high recorded in May, while consumer confidence jumped to the best reading in the survey’s history. Improving consumer confidence, coupled with a faster expansion in retail sales in May, bodes well for private consumption growth in Q2. Although the trade balance posted a surplus in June, the external sector remains an economic weak spot. Monetary policy normalization in developed economies and prospects of a global trade war have shaken investors’ confidence and caused the currency to depreciate 4.1% in the second quarter. While the Central Bank intervened forcefully to stem the rupiah’s depreciation, the currency remains under pressure due to high ownership of government bonds by foreign investors, elevated prices for fuel products and a persistent current account deficit.
Indonesia Economic GrowthThe domestic economy is expected to support healthy growth this year. However, prospects of a global trade war, a modest price outlook for Indonesian commodities, persistent turbulence in financial markets and higher crude oil prices could weigh on growth. Met the why particular panelists see GDP expanding 5.2% in 2018, which is down 0.1 percentage points from last month’s forecast. In 2019, the economy is seen growing 5.3%.
Indonesia Economy Data
5 years of Indonesia economic forecasts for more than 30 economic indicators.
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|Bond Yield||8.01||-0.05 %||Aug 15|
|Exchange Rate||14,600||0.05 %||Aug 15|
|Stock Market||5,817||-0.32 %||Aug 15|
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Indonesia Economic News
Indonesia: Bank Indonesia hikes rates in August; government announces import restrictions to stabilize currency
August 16, 2018
At its 14 and 15 August monetary policy meeting, Bank Indonesia (BI) raised the seven-day reverse repo rate by 25 basis points to 5.50%.
August 16, 2018
On 16 August, President Joko Widodo presented the 2019 budget to parliament.
August 15, 2018
Indonesia recorded a trade deficit of USD 2.0 billion in July, contrasting June’s USD 1.7 billion surplus, according to Statistics Indonesia.
August 8, 2018
In June, retail sales grew 2.3% over the same month last year, down from May’s 8.3% rise—which had marked an over one-year high.
August 6, 2018
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.