Indonesia's gross domestic product (GDP) grew 5.18 percent (y/y) in the second quarter of 2016, beating analysts' forecasts and accelerating strongly from the (downward revised) 4.91 percent (y/y) GDP growth pace that was recorded in the preceding quarter. Data from Indonesia's Statistics Agency (BPS), released this morning (05/08), also show that on a quarterly non-seasonally adjusted basis, Indonesia's GDP expanded by 4.02 percent in Q2-2016.
The 5.18 percent (y/y) GDP growth in Q2-2016 is a very positive result for Southeast Asia's largest economy, supported by growth in nearly all sub-sectors (only mining extraction contracted) with the financial services and insurance sector posting the highest growth at 13.51 percent (y/y).
Household consumption, which accounts for some 55 percent of total economic growth in Indonesia, improved in the second quarter of the year, accelerating by 5.04 percent (y/y) from 4.94 percent (y/y) in the preceding quarter. Government spending accelerated more markedly from 2.94 percent (y/y) in Q1-2016 to 6.28 percent (y/y) in Q2-2016. However, investment growth fell slightly to 5.06 percent (y/y) from 5.57 percent (y/y) in the first quarter. Meanwhile, Indonesia's exports and imports continued to contract in the second quarter but at a slower pace compared to the preceding quarter.
The GDP growth data in the first half of 2016 give rise to optimism that after a prolonged period of economic slowdown and stabilization, the Indonesian economy is now starting to accelerate again. Indonesia Investments will publish a more detailed column on Indonesia's Q2-2016 economic growth performance later.
Indonesia's Quarterly GDP Growth 2009-2016 (annual % change):
|Year|| Quarter I
||Quarter II||Quarter III||Quarter IV||Full-Year|
Source: Statistics Indonesia (BPS)
Poll Indonesia Investments:
Where do you see Indonesia's economic growth in full-year 2016?
Voting possible: -
- Between 5.0% - 5.2% (55%)
- Between 5.2% - 5.4% (19%)
- Below 5.0% (15.5%)
- More than 5.4% (10.5%)
Total amount of votes: 611