Connect with us

Hi, what are you looking for?

Right Decision NowRight Decision Now

World News

Indonesia’s economy grows at fastest pace in over a year in Q3

JAKARTA — Indonesia’s economy expanded at its fastest pace in more than a year in the third quarter (Q3), as improved investment and government spending underpinned growth in Southeast Asia’s largest economy.

Gross domestic product (GDP) expanded 5.72% year on year, up from 5.44% growth in the second quarter but below a forecast of 5.89% in a Reuters poll of economists.

Unadjusted for seasonal factors, GDP grew 1.81% from the previous three months, above the 1.62% growth forecast in the poll.

Investment expanded 4.96% annually in the third quarter — at its fastest pace in over a year — while government spending shrank more slowly than in the previous quarter.

Exports expanded nearly 22% year on year in the third quarter, picking up pace from growth of just under 20% in the April-June quarter. Indonesia expects to post the country’s largest ever export earnings in 2022 as the resources-rich country has benefited from rising commodity prices.

While Indonesia’s economy has seen an export boom this year, the outlook looks uncertain as tightening monetary policies across the world and soaring inflation risk derailing the global economy. An economic slowdown in China — Indonesia’s biggest trade partner — and the Bank Indonesia’s own rate-hiking campaign could also cloud the country’s growth prospects.

“Indonesia’s economic activity will tend to decline in the 4Q22 period, in line with the current declining global conditions … as well as a restrained increase in purchasing power due to inflationary pressures,” said Myrdal Gunarto, an economist at Maybank Indonesia.

He said the “strong” third-quarter figures reflected the normalization of economic activities after the easing of COVID-19 restrictions earlier this year.

Bank Indonesia has raised interest rates by a total of 125 basis points since August to contain inflation, which hit a seven-year high in September after the government raised subsidized fuel prices that month.

Finance Minister Sri Mulyani Indrawati has said the government would work to maintain Indonesia’s position as a relative “bright spot,” but warned about the impact of a potential global recession.

Growth accelerated in the manufacturing, transport, warehousing and hospitality industries; the data also showed. — Reuters

    You May Also Like


    The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...


    The Home Office has made next to no progress in tackling criminal fraud during the past five years, despite it having become Britain’s most...


    Mark Zuckerberg has laid off more than 11,000 Meta’s employees, about 13 per cent of its global workforce, in what he described as “some...


    1.22 billion people use Instagram every month. That’s a huge number of Instagrammers trying to hit it big on the platform all at the...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 | All Rights Reserved