Indonesia GDP hits better-than-expected 6.4%

Thanks to robust consumption and investment that countered weak net exports.

According to BBVA Research, strong consumption and investment offset weak net exports, resulting in a better-than-expected second quarter GDP outturn of 6.4% y/y. Growth has been supported, in part, by surging foreign investment, which rose by 30.2% y/y in the second quarter (US$5.9bn). Today’s positive outturn will likely cause Bank Indonesia to keep interest rates steady to help keep a lid on inflation and in view of recent currency weakness.

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