Indonesia GDP Review: 2Q22
GDP ɢʀᴏᴡᴛʜ 2Q22: ᴀ ᴘᴏɪɴᴛ-ᴛᴏ-ᴘᴏɪɴᴛ sʜᴏᴏᴛ ᴛᴏ 2019
Sᴇᴄᴏɴᴅ Qᴜᴀʀᴛᴇʀ 2022 GDP ɢʀᴏᴡs ʙʏ 5.44%
Indonesia economy in 2Q22, on an annual basis, expanded by 5.44% YoY, and by 3.72% over the first quarter of this year. . The 2Q22 annual GDP growth figure (1Q21: 5.01% YoY, 2021: 3.69% YoY, 2020:-2.07%YoY , 2019:5.02% YoY ) came in higher than most expectations of within 5.17% YoY.
Nᴇᴡ (ᴀɴᴅ Hɪɢʜᴇʀ) Nᴏʀᴍᴀʟ ᴏꜰ Pʀɪᴠᴀᴛᴇ Cᴏɴsᴜᴍᴘᴛɪᴏɴ Sᴘᴇɴᴅɪɴɢ
Household Final Consumption Expenditure (Private Consumption) during January to June this year (1H22) amounted to total IDR4,953.7tr in current price or, representing an annual growth of 8.6% (2021: 3.78% YoY, 2020:-0.7% YoY, 2019:5.04% YoY).
Taking into account the general price increase (GDP deflator) for the period of January to June 2022 of 3.5% (2Q22: 4.34%, 1Q22: 2.7%), in real-term, Indonesia Household Final Consumption Expenditure has expanded more than twice that of the pre-pandemic level year 2019.
In 2019, Private Consumption spending amounted to IDR8,965.8tr in current price (+5.04% YoY), while general price increase (GDP deflator) was recorded at 3.16%.
Lᴏᴏsᴇ Fɪsᴄᴀʟ ᴀɴᴅ Mᴏɴᴇᴛᴀʀʏ Pᴏʟɪᴄɪᴇs Eꜰꜰᴇᴄᴛ sɪɴᴄᴇ ᴛʜᴇ 2Q20
Accommodative fiscal and monetary policies initiated by the government and the central bank Bank Indonesia since the start of the pandemic in the 1Q20 (please see Report dated July 31, for detail) has fertilised the domestic private consumer sector to easily benefit from the higher commodity prices happen afterward.
Tʜᴇ Pɪɴɴᴀᴄʟᴇ ᴏꜰ Hᴏᴜsᴇʜᴏʟᴅ Fɪɴᴀʟ Cᴏɴsᴜᴍᴘᴛɪᴏɴ Exᴘᴇɴᴅɪᴛᴜʀᴇ ᴀɴᴅ Exᴘᴏʀᴛ
Private Consumption spending and Net Export of Goods and Services in the 2Q22 pulled their heights since the COVID-19 pandemic year 2020, each contributed by 2.92 and 2.14 percentage points , respectively, to 5.44% YoY GDP growth in 2Q22 (in C hart No. 3). The pattern seems to be a main trait of the Indonesia economy. With the latest progress of other macro economic indicators, the country’s GDP growth this year is estimated to be at the high range of 4.5%- 5.3%.
Cheers,