Connect with us

Business

In Q3, Indonesia’s Economy Grew At Its Fastest Pace In Over a Year

Avatar of Salman Ahmad

Published

on

In Q3, Indonesia's Economy Grew At Its Fastest Pace In Over a Year

(CTN News) – In the third quarter (Q3), Indonesia’s economy grew at its fastest pace in more than a year as the country’s largest economy benefited from improved investment and government spending.

According to Reuters, gross domestic product (GDP) increased by 5.72% year over year in the third quarter, compared to 5.44% in the second quarter but below the forecast of 5.89%.

GDP grew 1.81% from the previous three months, exceeding the forecast of 1.62% growth.

During the third quarter, investment grew at its fastest pace in over a year, whereas government spending slowed.

Exports increased nearly 22% year over year in the third quarter, following a growth rate of just under 20% in the April-June period. It is expected that Indonesia will post its largest ever export earnings in 2022 due to an increase in commodity prices.

Despite the fact that Indonesia’s economy has seen an export boom this year, the outlook is uncertain. This is because tightening monetary policies around the world and soaring inflation threaten to derail the global economy.

A slowdown in China, Indonesia’s largest trade partner, and Bank Indonesia’s own rate-hiking campaign could also dampen Indonesia’s growth prospects.

As a result of the current declining global Indonesia’s economy conditions as well as inflationary pressures, Indonesia’s economy activity is expected to decline in 4Q22. This is according to Myrdal Gunarto, an economist at Maybank Indonesia.

As a result of the easing of COVID-19 restrictions earlier this year, the third-quarter figures were “strong.”

Since August, Bank Indonesia has raised interest rates by 125 basis points in an effort to contain inflation, which hit a seven-year high in September following the government’s decision to hike subsidized fuel prices.

According to Finance Minister Sri Mulyani Indrawati, the government will work to maintain Indonesia’s position as a relative “bright spot,” but a global recession could adversely affect the country.

Manufacturing, transport, warehousing, and hospitality industries also experienced accelerated growth.

SEE ALSO:

Cyber Police Warn Thai Women Over Romance Scams

Continue Reading

CTN News App

CTN News App

Recent News

BUY FC 24 COINS

compras monedas fc 24

Volunteering at Soi Dog

Find a Job

Jooble jobs

Free ibomma Movies