Indonesia: Economic growth remains buoyant in Q2
August 6, 2012
In the second quarter, GDP grew 6.4% over the same quarter last year, which was up from both the 6.3% increase observed in the first quarter as well as market expectations of a more moderate 6.1% expansion. The result mainly reflected robust domestic demand, which compensated for weaker export growth. Private consumption maintained its resilience and added 5.0% year-on-year, which was virtually unchanged from the 4.9% rise observed in the first quarter. In addition, fixed investment accelerated from a 10.0% rise in the first quarter to a 12.3% expansion in the second. Finally, government consumption rose 7.0% (Q1: +5.9% year-on-year). On the external side, exports slowed notably to a mere 1.9% expansion in the second quarter, down from the 7.9% rise observed in the first quarter. Imports, on the other hand, added 10.9% (Q1: +8.0% yoy). As a result, the external sector's net contribution to overall growth deteriorated from minus 0.9 percentage points in the first quarter to minus 4.6 percentage points in the second.
Author: Ricardo Aceves, Senior Economist