Indonesia GDP Q3 2022


Indonesia: GDP growth records best reading since Q2 2021 in Q3

November 7, 2022

Economic growth improved in the third quarter, with GDP expanding 5.7% on an annual basis (Q2: +5.4% year on year). Q3's reading marked the fastest increase since Q2 2021.

Household spending growth ebbed to 5.4% year on year in Q3 from a 5.5% expansion in Q2. Government spending, meanwhile, contracted at a slower pace of 2.9% in Q3 (Q2: -4.9% yoy). Fixed investment growth improved to 5.0% in Q3, from the 3.1% expansion recorded in the previous quarter.

On the external front, exports of goods and services growth accelerated to 21.6% year on year in the third quarter, which marked the best reading since Q4 2021 (Q2: +20.0% yoy). In addition, imports of goods and services growth sped up to 23.0% in Q3 (Q2: +12.4% yoy).

Commenting on the outlook, Nicholas Mapa, senior economist at ING, noted:

"Growth, however, is expected to face challenges as early as Q4 2022 as both core and headline inflation accelerate, a development which could undercut domestic consumption. Meanwhile, expectations for a slowdown in global trade could also weigh on Indonesia’s export sector in the coming months.”

FocusEconomics Consensus Forecast panelists expect GDP to expand 4.7% in 2023, which is unchanged from last month’s forecast. In 2024, GDP is seen growing 5.2%.

Author: Massimo Bassetti, Senior Economist

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Indonesia GDP Chart

Indonesia GDP Q3  2022

Note: Year-on-year changes of GDP in %.
Source: Statistics Indonesia (BPS) and FocusEconomics Consensus Forecast.

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