Indonesia Pulled Out Recession as GDP grows 7.07% in Q2/2021
Statistics Indonesia (BPS) reported that the country’s economy expanded by 7.07% in the second quarter of 2021, rebounding sharply from a marginally revised 0.71% contraction in the previous quarter. It was the first-time expansion in the economy in five quarters and the strongest pace since Q4 of 2004, due to a low base effect from last year.
Both household consumption (5.93% vs -2.22% in Q1) and fixed investment (7.54% vs -0.23%) rebounded while external demand contributed positively to the GDP, as exports jumped by 31.78%, while imports rose at a softer 31.22%. Meanwhile, government spending expanded faster (8.06% vs 2.34%).
On the production side, output grew mainly for transportation and warehouse (25.10%), accommodation and food services (21.58%), mining (5.22%), manufacturing (6.58%), construction (4.42%), wholesale trade, retail (9.44%), communication (6.87%). For the first half of the year, the GDP advanced 3.10% from a year earlier.
