Indonesia’s economy grew more slowly in the second quarter of 2024 despite support from spending on religious holidays and increased household consumption, the Indonesian statistics agency reported on Monday.
According to the Indonesian Statistics Office, Southeast Asia’s largest economy grew 5.05 percent in the second quarter, slightly lower than the 5.11 percent of the previous quarter.
“Economic growth is also lower compared to the second quarter of 2023,” Mohamad Edy Mahmud, deputy head of Statistics Indonesia, told a news conference.
Despite the slower growth, the Indonesian Statistics Office stressed that the domestic economy is relatively robust and stable, but some economists questioned whether the country could sustain this growth.
“We don’t have much confidence in the official data,” said Gareth Leather, senior Asia economist at Capital Economics.
“We do not think this recovery will last. We expect growth to slow down in the coming months.”
Indonesia’s central bank announced a surprise interest rate hike earlier this year to 6.25 percent, the highest rate in seven years, to support the rupiah, which had weakened against the dollar.
dsa/ebe/fox
