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Financial News: Indonesian Economic Growth Eases To 4.87%

Indonesian Economic Growth Eases To 4.87%

05/05/2025 - 03:03:00 (RTTNews)

(RTTNews) - Indonesia's economy continued to expand strongly in the first quarter, though at the weakest pace in more than three years, official data revealed on Monday.

Gross domestic product posted an annual growth of 4.87 percent in the first quarter, slower than the 5.02 percent expansion seen in the preceding period, Statistics Indonesia said. GDP was forecast to grow 4.91 percent.

Further, this was the weakest growth since the third quarter of 2021, when GDP had risen 3.53 percent.

Meanwhile, Southeast Asia's largest economy contracted 0.98 percent sequentially after rising 0.53 percent in the final quarter of 2024.

On the expenditure side, household spending grew at a slower pace of 4.89 percent annually versus 4.98 percent expansion in the previous quarter. The overall rise was driven by Ramadan and Eid al-Fitr moments.

The yearly growth fixed investment eased markedly to 2.12 percent from 5.03 percent. Despite slower growth, the upward momentum was sustained by increased imports of capital goods, especially machinery and vehicles.

Export growth softened to 6.78 percent from 7.63 percent, and imports logged a much slower growth of 3.96 percent versus 10.36 percent.

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