Indonesia continues to record GDP growth in the July – September period, again beating previous quarters. Yet growth is slightly below forecasted, and future outlook is uncertain.
Beating the forecasted 5.17% growth, Indonesia’s GDP grew by 5.44% in the second quarter of the year, the fastest increase in four quarters. Meanwhile, compared with the first quarter of the year, the second quarter showed even greater growth, highlighting the trend of the economic recovery in Indonesia.
Indonesia’s economic growth remained stable in Q1 2022, as COVID-19 restrictions were further loosened. The recovery in consumption, investment, and exports contributed to the growth in the quarter.
Powered by the recovering domestic demand, a further easing of COVID-19 curbs, and the global commodity boom, Indonesia’s GDP growth in the last quarter of 2021 accelerated to 5.02% (YoY).
As harsh lockdowns to contain COVID-19 spikes outweighed the effect of higher commodity prices and trade, Indonesia’s GDP only recorded a 3.51% growth (YoY) in Quarter 3 of 2021, showing a significant slowdown from Quarter 2’s growth of 7.07% (YoY).
In the second quarter of the year, Indonesia pulled out of the COVID driven recession, and recorded its strongest quarterly growth rate in 17 years. However, the country is now expected to suffer a setback due to the recent spread of the newer Delta variant.
Indonesia’s economic performance gradually recovered in Q4 2020, with contraction 2.07% (YoY). Compared to previous quarter, the contraction is a clear indication of economic improvement.
Download Economic Update Report