Q2 GDP Growth at 5.05% YoY, Domestic Demand Drives Expansion

  • Indonesia’s economy slowed down slightly in Q2 but maintained solid growth
  • GDP grew at 5.05% YoY and 3.79% QoQ
  • Accommodation and food services industry led gains with 10.17% growth
  • Manufacturing sector grew by 3.95% YoY
  • Household consumption and investment contributed to growth
  • Exports rose 8.28%
  • Economists expect slower growth due to weaker global conditions

Indonesia’s economy slowed down slightly in the second quarter, with a growth rate of 5.05% year-on-year (YoY) and 3.79% quarter-on-quarter (QoQ, compared to 5.11% in Q1. The accommodation and food services industry led the gains at 10.17%, followed by transportation and warehousing at 9.56%. Manufacturing, which makes up the largest share of GDP, grew by 3.95% YoY. Household consumption and investment were the main growth contributors, supported by religious and school holidays in Q2. Exports increased by 8.28%, with both value and volume rising. Despite this, economists predict slower growth due to weaker global conditions, high interest rates, and declining commodity prices. Indonesia is projected to expand at 4.5% for the second half of the year, driven by domestic demand.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Indonesia’s economic growth and includes expert opinions from economists. It presents relevant data and statistics, and while it mentions potential challenges for the future, it does not include any irrelevant or misleading information, sensationalism, redundancy, opinion masquerading as fact, bias, invalid arguments, logical errors, inconsistencies, or fallacies.
Noise Level: 3
Noise Justification: The article provides relevant information about Indonesia’s economy and its growth rate, citing data from official sources and expert opinions. It also mentions potential challenges ahead such as weaker global growth and lower commodity prices. However, it does not delve into the underlying reasons for these challenges or explore their consequences on different sectors of the economy or the population. The article could benefit from more in-depth analysis and contextualization.
Key People: Moh Edy Mahmud (Deputy for balance sheets and statistical analysis at Statistics Indonesia), Gareth Leather (Senior Asia economist at Capital Economics), Dhiraj Nim (Economist at ANZ), Sanjay Mathur (Economist at ANZ)

Financial Relevance: Yes
Financial Markets Impacted: Indonesian economy and related industries such as manufacturing, exports, and investment
Financial Rating Justification: The article discusses the slowdown in Indonesia’s economic growth, which affects various sectors of their economy and may impact financial markets and companies operating within or investing in the country.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the article.

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