JAKARTA — Indonesia’s gross domestic product (GDP) in the third quarter increased 4.95 percent from a year earlier, its slowest pace in a year, data from the statistics bureau showed on Tuesday, as household consumption showed softer growth.
The third-quarter result came slightly below the 5-percent annual growth expected by analysts polled by Reuters and compared with an increase of 5.05 percent in the second quarter.
On a quarterly, non-seasonally adjusted basis, GDP grew 1.50 percent, compared with a forecast of 1.59 percent.
Household consumption, which makes up around half of Indonesia’s GDP, grew 4.91 percent annually in the third quarter, compared to 4.93-percent growth in the previous quarter, amid slower spending for goods such as clothing and housing, Statistics Indonesia acting head Amalia Widyasanti told reporters.
Investment grew 5.15 percent year on year, its fastest pace in a year, supported by investment into the new capital city and other infrastructure projects, she added.
Government spending and exports also expanded more.
“Third quarter growth numbers met our expectations as investment growth and pickup in exports compensated for soft household consumption,” said DBS Bank economist Radhika Rao.
Indonesia’s finance minister said last month that growth of around 5 percent was expected in the third quarter and growth in 2024 was seen at 5.1 percent, although geopolitical tensions were a risk.
In September, Bank Indonesia cut rates to support the economy, and then held steady in October as rising tensions in the Middle East put the rupiah under renewed pressure.
The third-quarter GDP reading backs DBS Bank’s forecast for a further rate cut by the central bank this quarter, assuming rupiah stability, Rao added.
The rupiah on Tuesday fell for a fourth session, touching its lowest since August.
Be the first to comment