Insight

Indonesia's Economy Continues to Stagnate

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Algo Research Team

Economics | Nov 14, 2024 | Views: 645

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Key Summary:

  • 3Q24 GDP growth was driven by investment
  • But, this has led to higher imported goods too
  • Household consumption is weak and lacks growth

Indonesia's GDP in 3Q24 was slightly below estimates, growing at +4.9% versus expectations of 5-5.1%. This was the second time, excluding 2020-21 pandemic, that GDP growth was below 5%, indicating a stagnating economy.


Zoom in: The main growth driver of the economy in 3Q24 was higher gross fixed capital/investment, though this led to higher imports as well, especially in machinery and equipment.

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