Indonesia’s economy recuperates in Q2
Indonesia recovered from recession after growing at its fastest annual rate in more than a decade in the second quarter. However, analysts warned of an economic setback due to the latest wave of COVID-19 infections.
The country expanded for the first time in five quarters at 7.07% in the April-June quarter compared with a year earlier, Statistics Indonesia showed.
The figure exceeded Reuters’ forecast of 6.57%. It was also the highest since the last quarter of 2004.
The contraction in the first quarter was changed to 0.71%.
The economy ballooned 3.31% on a quarterly, non-seasonally adjusted basis, beating a 2.94% prediction.
Increased mobility in the first quarter contributed to the growth in transportation, warehousing, and food and beverage sectors.
The expansion was also due to low base effects when compared to last year’s weak second quarter.
However, adverse impact on the recovery progress is expected following the surge in COVID-19 cases.