Indonesia's GDP Grows 5.05% in Q2

Indonesia's GDP grew by 5.05% year-on-year in the second quarter of 2024, maintaining a robust performance despite a slight decline from 5.11% in the previous quarter. This growth aligns closely with market expectations of around 5.0%, driven by household consumption and fiscal stimulus, although government spending saw a significant slowdown. Analysts noted that the economy remains resilient amid high borrowing costs and external pressures, supported by improving exports and domestic demand. The quarterly growth was measured at 3.79%, exceeding some forecasts, signaling ongoing economic strength. The government anticipates full-year growth between 5% and 5.2%, with further domestic economic activity expected through 2024. Finance Minister Sri Mulyani Indrawati highlighted the influence of geopolitical risks on the economy, indicating a cautious outlook ahead.