MACROECONOMIC ANALYSIS SERIES: Indonesia Economic Outlook Q3-2022

The auspicious progress in the domestic public health situation has transpired into a solid GDP growth of 5.01% (y.o.y) in Q1-2022. In the first half of 2022, Indonesia was in an advantageous position to face the latest global economic turmoil. Thanks to the combination of good policy and good luck, first, a rapid buildup of economic activity. Major economic sectors, such as manufacturing, wholesale & retail trade, construction, and ICT, contributing to around 50% of GDP, recorded a rising growth in Q1-2022. In addition, sectors relied on physical activities, such as transportation & storage and accommodation & FnB showed substantial improvement due to the relaxation of social restriction policies. The economic recovery was also reflected in household consumption with 4.34% (y.o.y) growth in Q1-2022, higher compared to the last three months of 2021. Household consumption will most likely grow greater in Q2-2022 due to the momentum of Ramadhan and Eid Al-Fitr. At the same time, total credit continued to accelerate along with demand recovery. Moreover, all other expenditure components, investment and exports, also recorded positive growths in the same period.

Download (PDF, 3.36MB)

%d bloggers like this: