Indonesia’s GDP Grows by 5.02% in the 4th Quarter

The Indonesian Bureau of Statistics reported today that the Indonesian economy grew 5.02% y/y in 4Q21, up from 3.51% in 3Q21.

The Indonesian economy grew in the fourth quarter as consumption rose after the government eased containment measures to curb the spread of COVID-19, and rising commodity demand drove exports to a record high.

For the full year 2021, domestic GDP grew by 3.69%, after contracting by 2.07% in the previous year.

However, the economic outlook remains weak as the number of coronavirus cases increases. Besides, financial markets could be exposed to fluctuations due to restrictive fiscal policies in many countries around the world.

Household consumption grew by 3.6% in the fourth quarter compared with 1% in the third quarter, accounting for more than half of Indonesia’s GDP.

In addition, government investment and spending increased at a faster pace in the fourth quarter, while exports rose 29.8% from 29.2% in the third quarter, reflecting the prices of export commodities such as palm oil, coal, and nickel remained high.