Indonesia Q3 GDP Growth at 2-Year Low

Indonesia's economy expanded by 4.94% yoy in Q3 of 2023, softer than market forecasts of a 5.05% gain, slowing from a 5.17% expansion in Q2, pointing to the weakest growth since Q3 of 2021, due to easing household consumption and declines in government spending and exports, amid moderating commodity prices.

Household consumption moderated (5.06% vs 5.22% in Q2), while government spending fell (-3.76% vs 10.57%).

Also, net trade contributed negatively amid faster drops in both exports (-4.26% vs -2.97%) and imports (-6.18% vs -3.80%).

Meanwhile, fixed investment continued to expand (5.77% vs 4.63%).

On the production side, output growth softened for agriculture (1.46% vs 2.02%% in Q2), wholesale & retail trade (5.08% vs 5.26%), and health services (2.92% vs 8.27%).

Output continued to grow for manufacturing (5.20% vs 4.88%), mining (6.95% vs 5.01%), communication (8.52% vs 8.05%), and construction (6.39% vs 5.23%).

The government for this year predicted the economy to grow by 5.1%.