Indonesia GDP growth dips to 5.02% in Q3

Demand-side private consumption slipped to 1.2% in Q3 due to weak spending.

Indonesia’s GDP for Q3 slowed down to 5.02% YoY from 5.05% in the previous quarter, marking its slowest pace in two years, according to an HSBC report.

The reversal in election spending in Q2 partly reflected on the decline in demand-side private consumption from 1.4% in Q2 to 1.2% in Q3, which was already brought down by weak coal and palm oil prices and a nosedive in social assistance spending.

Momentum on gross fixed capital formation (GFCF) growth rose to 1.8% QoQ in Q3 from 0.7% in H1 2019 in line with growing capital goods exports in July.

Net exports accelerated to 1.8ppt YoY as imports crashed -8.6% YoY due to dim consumer goods and raw material imports.

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