Indonesia: Growth in retail sales accelerates in December
February 11, 2019
In December, retail sales grew 7.7% over the same month in the prior year, up from November’s 3.4% expansion and matching the Bank’s initial estimate. December’s uptick was driven by faster growth in the food, beverages and tobacco; motor vehicle parts and accessories; cultural and recreation goods; and other household equipment subsectors. December’s figure was likely buoyed by government fiscal support to working-class voters in the build-up to the April 2019 general elections.
Retail sales are likely to remain firm in the coming months thanks to ongoing public spending measures and mild inflation. Indeed, according to the Bank of Indonesia’s survey, retail sales should have grown 4.8% in January.
Author: Oliver Reynolds, Economist