Indonesia GDP Growth_3Q22

GDP Gʀᴏᴡᴛʜ 3Q22: Iɴᴛᴏ Pʀᴏɢʀᴇssɪɴɢ Fᴀsᴛᴇʀ, ғʀᴏᴍ ᴛʜᴇ Bᴀʀᴇ Mɪɴɪᴍᴜᴍ

Third Quarter 2022 GDP grows by 5.72%

Indonesia’s economy in the 3Q22, on an annual basis, expanded by 5.72% in a constant term, and by 1.81% over the second quarter of this year.   The 3Q22 annual GDP growth figure (2Q22: 5.45% YoY, 2021: 3.69% YoY, 2020:-2.07%YoY, 2019:5.02% YoY ) came in as expected.

Household Final Consumption Expenditures Grows the Highest Since 2013

In the 3Q22, Household Final Consumption Expenditures (HFCE or private consumption) recorded growth of 5.39% over the same period last year, or the highest since 3Q13 (in Chart 1).

Monetary and fiscal policies administered during the COVID-19 pandemic years worked and accommodated into the economic system. This has been appreciated in the stock market as one of the leading indicators for future scenarios (in Chart 4). During the release of the 3Q GDP data on November 7, the Jakarta Composite Index closed higher by 0.8% to 7,102pt and created a decent short-term discrepancy with the year-low of 6,510pt in May.

In an environment of increasing complexity, a higher level of predictability (in Chart 2 and Chart 3) leads to a higher valuation.

 Cheers,

.