Forex News

The growth of Indonesia's economy exceeded forecasts in Q2

Indonesia's economy increased faster than expected in the second quarter, data from the statistical office showed.

Gross domestic product grew by 5.3 percent compared to the previous year. Economists predicted an annual increase of 5.12 percent compared to an increase of 5.06 percent in the first quarter.

In quarterly terms, GDP in the second quarter increased by 4.21 percent.

In the first half of the economy, the economy grew by 5, 17 percent compared to the same period last year.

It is unlikely that the economy of Indonesia will be able to maintain the current pace of expansion, said economist Capital Economics Gareth Lazer. On the plus side, rapid wage growth should help maintain consumption.

However, the economist noted that weaker global demand and lower prices for basic commodity exports mean that export earnings are likely to remain low by past standards. [19659002] Moreover, infrastructure spending will slow if the government maintains a budget deficit within a 3 percent mandatory GDP limit, Lazer said.