Indonesia Leading Others, Globally, at Economic Recovery Post Pandemic
The economic situation globally is striving, with most nations trying to recover from the stresses caused by the pandemic. But, one country is enjoying a favourable economy. Indonesia economy growing has shown how proper management and governance can help a country prosper even during turbulent times.
Official data showed that Indonesia was progressing positively quickly, faster than expected in the second quarter of the year, the fastest rate in three quarters, despite lagging exports.
According to Statistics Indonesia, the largest economy in Southeast Asia, grew 5.17 per cent year on year between April and June, exceeding analysts’ expectations.
Statistics Indonesia official Edy Mahmud says that the continued growth was driven by household spending, foreign and domestic investment, and increased government spending. It was also making positive progress during the second quarter of 2023. Indonesians were spending and consuming more due to increased mobility and religious holidays.
He further highlights Indonesia’s economy as resilient as it emerges from multiple economic setbacks such as the COVID-19 pandemic, contracting exports since quarter four of 2020 and falling palm oil prices.
Continuing on the Growth
Indonesia experienced 5.3 per cent growth last year, the highest in nine years, thanks to rising export prices and lifting travel restrictions.
Indonesia’s business capital, Jakarta, aims to make it happen again this year.
Analysts predict a slowdown in the coming months as record global commodity prices fueled by the Ukraine conflict begin to ease.
A Senior Asia economist at Capital Economist, Gareth Leather, says that weaker global demand and lower commodity prices weighed heavily on exports last quarter. Based on his findings, global growth would continue to struggle, with commodity prices remaining low, suggesting exports remain weak.
According to Leather, Indonesia’s quarterly growth rate will fall to around 4.5 per cent in the coming months, while official figures show it will remain at approximately five per cent.
Insightful Business Climate with 3E Accounting
With Indonesia economy growing, 3E Accounting is ever ready to assist investors from around the globe to invest and set up their business in Indonesia. Our full services of business solutions will enable your business peace of mind from the moment you engage with us. Contact us to know more about our services.
