Indonesia’s economic growth accelerated more than expected in the fourth quarter underpinned by robust household spending, Statistics Indonesia reported Monday.<\/p>\n
Gross domestic product grew 5.02 percent from the last year, following a 3.51 percent rise in the third quarter. This was also faster than the expected rate of 4.90 percent and marked the third consecutive growth. <\/p>\n
On a quarterly basis, GDP advanced 1.06 percent, but slower than the 1.55 percent expansion posted in the third quarter.<\/p>\n
In the whole year of 2021, GDP gained 3.69 percent after shrinking 2.07 percent in 2020.<\/p>\n
On the expenditure-side, household consumption grew 3.6 percent and government spending by 5.25 percent. Investment gained 4.5 percent in the fourth quarter. <\/p>\n
Exports and imports surged 29.8 percent and 29.6 percent, respectively. <\/p>\n
Indonesia’s economy<\/span> rebounded strongly in the final quarter of last year, but the recovery is now entering a more difficult phase, Gareth Leather and Alex Holmes, economists at Capital Economics, said. <\/p>\n
Omicron will act as a small obstacle in the first quarter, the economist noted. But a bigger drag will come from falling commodity prices and policy tightening.<\/p>\n
Prospects for recovery this year will likely be challenged by a pending increase in taxes coupled with projections for a pickup in inflation, both of which will likely weigh on household spending, Nicholas Mapa, an ING economist, said.<\/p>\n
Thus it will be imperative for Indonesia to ensure proper virus mitigation, which should help bolster consumption in the coming months, Mapa added. <\/p>\n
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