5-8-2024 (JAKARTA) Indonesia’s annual economic growth held steady just above the 5 per cent mark in the second quarter, roughly in line with the expectations of authorities and market analysts, data from the statistics bureau revealed on Monday. The country’s gross domestic product (GDP) in the April-June quarter expanded by 5.05 per cent from a year earlier, compared to a 5.11 per cent annual growth rate in the first quarter.
The second-quarter growth figure aligns closely with the forecasts of economists polled by Reuters and the projections of government officials, who had anticipated Southeast Asia’s largest economy to post a 5.0 per cent annual growth rate for the April-June period.
According to M. Edy Mahmud, the deputy head of Statistics Indonesia, the robust second-quarter growth was underpinned by robust consumer spending during religious holidays and rising farmers’ income during the harvest season.
Household spending, which accounts for more than half of Indonesia’s GDP, grew by 4.93 per cent in the second quarter, barely changed from its growth rate in the previous quarter. This consistent level of consumer spending played a crucial role in sustaining the country’s economic momentum.
In contrast, government spending experienced a significant slowdown, expanding by only 1.42 per cent in the second quarter. This marked a sharp deceleration from the nearly 20 per cent growth witnessed in the first quarter, which was driven by increased expenditure related to the February general election.
