Indonesia's GDP Growth Slowed In Q3

Forex News

Indonesia's economic growth slowed in the third quarter, amid softer household consumption and a negative contribution from foreign trade. Stronger investment and government spending failed to mitigate slowing household consumption, which accounts for more than half of Indonesia's GDP. The Southeast Asian economy has also struggled with capital outflows and weaker exports and household spending.

The statistics bureau reported, that gross domestic product (GDP) expanded by 5.17% in Q3 from a year earlier, compared with a 5.15% growth expected. The Indonesia’s economy expanded by 5.27% in the April-June quarter, which was the fastest since late 2013.

The Indonesia’s government expects annual GDP to be 5.4% this year and projects growth at 5.3% for next year. Still, the trade war could pressure Indonesia's economy through its financial markets.