Relaxation of Covid-19-related restrictions helped Indonesia’s economy register a steady pace of growth in the first quarter, official data revealed Monday.
Gross domestic product grew 5.01 percent from the last year, following a 5.02 percent rise in the fourth quarter of 2021. The rate also came in line with economists’ expectations.
On a quarterly basis, Southeast Asia’s largest economy shrank 0.96 percent, in contrast to the 1.06 percent rise in the fourth quarter.
This was the first fall in four quarters and slightly bigger than economists’ forecast of 0.89 percent decline.
On the expenditure-side, household consumption gained 4.34 percent yearly, while government spending declined 7.74 percent. Gross fixed capital formation grew 4.09 percent.
Exports logged an annual growth of 16.22 percent and imports advanced 15.03 percent.
Activity is rebounding now that the economy has reopened, but other headwinds are growing, economists at Capital Economics said. The firm expects the Indonesian economy to grow 6 percent this year.
In April, Bank Indonesia lowered its economic growth outlook to 4.5 percent to 5.3 percent from the previous forecast of 4.7 percent to 5.5 percent.
Elsewhere, data from the statistical office showed that consumer price inflation hit the highest rate since late 2017. Inflation rose to 3.5 percent in April, faster than the economists’ forecast of 3.34 percent.
Nonetheless, inflation remained within the central bank’s target of 2-4 percent. Bank Indonesia has kept its interest rate unchanged at the current 3.50 percent since early 2020.
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