Economy consumption and exports boost in second quarter: The Economist

Four sectors are most affected by the pandemic

JAKARTA (Antara) – Indonesia’s economy grew 5.44% year-on-year in the second quarter of 2022 on higher consumption, investment and exports, Bank Danamon economist Irman Faiz said.

“Second-quarter GDP (gross domestic product) was largely supported by higher household consumption and higher net exports,” he announced here on Friday.

Faiz said household consumption contributed around 2.92% to total GDP growth in the second quarter as the Eid al-Fitr celebrations helped bring economic activity back to near normal.

Meanwhile, net exports added 2.14% to gross growth. This is consistent with a trade surplus amid rising commodity prices.

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Fixed investment also contributed 0.94% to total GDP growth in the second quarter.

The good recovery in demand was also reflected by sector, with four sectors showing growth of around 50%, he noted.

“Four sectors are the ones most affected by the pandemic,” Faiz said.

Four sectors were manufacturing, which grew by 0.82%. Transportation he expanded by 0.76%. Wholesale and retail, 0.58%. and communications, 0.50%.

Overall, Faiz is optimistic that the Indonesian economy will grow by 5.1% year-on-year in 2022, given that it has grown over 5% in the last two quarters.

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Furthermore, he predicted that GDP in the third quarter of 2022 will be above the level of the second quarter, in line with the low baseline in the realization of the third quarter of the previous year.

He said leading indicators for July 2022 also showed stronger activity, including the Manufacturing Purchasing Managers Index (PMI), which recorded 51.3.

“We remain optimistic about the full-year (year-on-year) GDP growth outlook of 5.1%,” he added.

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