Indonesia: Retail sales contract in December, further fall forecast for January
February 11, 2020
In December, retail sales decreased 0.5% year-on-year, contrasting November’s 1.3% expansion and broadly in line with the Central Bank’s initial estimate. December’s fall was driven by lower sales in the IT and culture and recreation subsectors. The Bank expects retail sales to have contracted 3.1% in January, potentially linked to the coronavirus outbreak dampening consumption.FocusEconomics Consensus Forecast participants see private consumption rising 5.1% in 2020, which is unchanged from last month’s forecast, supported by higher wages and a strong labor market. For 2021, panelists see private consumption increasing 5.2%.
Author: Oliver Reynolds, Economist