Financial News: Indonesia GDP Growth Tops Expectations

Indonesia GDP Growth Tops Expectations

05/05/2023 - 07:33:00 (RTTNews)

(RTTNews) - Indonesia's economy expanded at a faster-than-expected pace in the first quarter on the back of robust household spending and foreign demand, official data revealed on Friday.

Gross domestic product grew 5.03 percent on a yearly basis in the first quarter, following the fourth quarter's 5.01 percent expansion in the preceding period. The rate was also faster than economists' forecast of 4.95 percent. Moreover, the latest figure marked the eighth straight quarter of expansion.

On a quarterly basis, GDP declined 0.92 percent, in contrast to the 0.36 percent growth in the fourth quarter. This was the first decline in a year. GDP was expected to fall 1.0 percent.

Economic growth was broad-based with all components providing positive contribution to growth.

Nonetheless, annual growth was largely driven by the 4.54 percent expansion in household consumption. Government spending grew 4.0 percent and capital formation rose moderately by 2.11 percent. Exports posted a sharp annual increase of 11.7 percent, while imports gained only 2.8 percent.

The central bank forecast Southeast Asia's largest economy to expand in the range of 4.5 to 5.3 percent this year. Bank Indonesia forecast private consumption to strengthen amid rising consumer confidence and stronger purchasing power given lower inflation.

<a href=https://www.rttnews.com/3360294/indonesia-inflation-eases-to-4-33-lowest-in-11-months.aspx target=_blank >Inflation</a> has slowed to an 11-month low of 4.33 percent in April from 4.97 percent in the previous month. The central bank aims to bring inflation to the target of 2-4 percent.

"Given our outlook for slowing inflation, a stable currency and potential central bank easing, we may consider adjusting our full-year growth forecast of 4.6%YoY upwards," ING said.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Australia Construction Work Done Increases 1.8% In Q1 (01 hr(s), 26 min(s), 26 sec(s) ago)
(RTTNews) - The total value of construction work done in Australia was up a seasonally adjusted 1. ...Full Story»

Australia Private Sector Credit Climbs 0.6% In April (01 hr(s), 32 min(s), 26 sec(s) ago)
(RTTNews) - Private sector credit in Australia was up 0.6 percent on month in April, the Reserve B ...Full Story»

China Manufacturing PMI Slides In May - NBS (01 hr(s), 41 min(s), 26 sec(s) ago)
(RTTNews) - The manufacturing sector in China continued to contract in May, and at a faster rate, ...Full Story»

Japan Retail Sales Climb 5.0% On Year In April (02 hr(s), 56 min(s), 26 sec(s) ago)
(RTTNews) - The total value of retail sales in Japan was up 5.0 percent on year in April, the Mini ...Full Story»

Japan Industrial Production Falls 0.4% In April (03 hr(s), 02 min(s), 26 sec(s) ago)
(RTTNews) - Industrial production in Japan was down a seasonally adjusted 0.4 percent on month in ...Full Story»

South Korea Industrial Production Slumps In April (03 hr(s), 34 min(s), 26 sec(s) ago)
(RTTNews) - Industrial production in South Korea was down a seasonally adjusted 1.2 percent on mon ...Full Story»

Japan Industrial Production Data Due On Wednesday (05 hr(s), 18 min(s), 26 sec(s) ago)
(RTTNews) - Japan will on Wednesday release April figures for industrial production, headlining a ...Full Story»

Spain Inflation Eases Unexpectedly To Lowest In 22 Months (12 hr(s), 49 min(s), 26 sec(s) ago)
(RTTNews) - Spain's consumer price inflation eased unexpectedly in May to the lowest level in ...Full Story»