Indonesia’s GDP grows in Q2
Indonesia’s economic growth is seen to hit more than 6% in the second quarter. However, the resurgence of COVID-19 infections in June muddles the outlook in the succeeding quarters.
The country’s gross domestic product (GDP) grew 6.57% in April-June on an annual basis, the first expansion in five years.
The figure is also the fastest rate since 2010, but it fell short of the government and the central bank’s forecasts of 7% and 6.75%, respectively.
Indonesia’s economy contracted 2.1 % last year and continued to weaken in the first quarter of 2021 with a 0.74% fall.
A range of positive data contributed to the recovery in the second quarter, including rising car, motorcycle, cement sales, record highs in a purchasing managers’ index, and surging exports.
Despite the growth, analysts expect the surge in the highly infectious COVID-19 Delta variant to hamper the country’s economic rebound.