Image: Reuters Berita 24 English - According to official data released on Friday, Indonesia's economic development surged in the April-J...
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| Image: Reuters |
Berita 24 English - According to official data released on Friday, Indonesia's economic development surged in the April-June quarter amid an export boom fueled by soaring commodity prices. However, the prognosis is jeopardised by monetary tightening, rising inflation, and a potential global recession.
GDP growth in the second quarter was 5.44 percent, which was the strongest growth rate in a year, according to figures from Statistics Indonesia. That was higher than both the first quarter's yearly growth of 5.01 percent and the consensus projection of a 5.17 percent increase in a Reuters poll.
Export growth accelerated to nearly 20 percent annually from 16.22 percent in the previous quarter, which the statistics office deemed "outstanding."
After the COVID-19 limits were lifted, household consumption—which makes up more than half of GDP—recovered even more. The Eid al-Fitr holiday in May also helped. Investment, however, stagnated.
Sector-wise, the mining, building, transportation, and warehousing industries all experienced faster growth than during the prior time frame.
The increase in full-year 2022 GDP from 2021, according to Indonesia's central bank, will, however, be at the lower end of the range of 4.5 percent to 5.3 percent. It had before predicted growth somewhere in the middle of that range.
In decreasing its projection, it claimed that a slowdown in the global economy would hurt exports and that domestic inflation would hinder the pace of the consumer sector's recovery.
Consumer price inflation reached a seven-year high in July at 4.94 percent, prompting experts to urge for Bank Indonesia to raise interest rates from pandemic-era lows.
