Reuters
Reuters published this article:
Indonesia's economy expanded at its fastest pace in more than a year in the third quarter, underpinned by improved investment and government spending, but economists warned of tougher times ahead.
Southeast Asia's largest economy grew 5.72% year-on-year, according to data from Statistics Indonesia. That was up from a 5.44% pace in the second quarter but below the 5.89% expansion forecast in a Reuters poll of economists.
Unadjusted for seasonal factors, gross domestic product (GDP) rose 1.81% from the previous three months, above the 1.62% increase forecast in the poll.
Investment grew at its fastest pace in more than a year, private consumption remained robust, government spending shrank more slowly and exports rose in the double-digits, even as their net contribution to GDP fell as imports also increased.
"Economic growth in Indonesia accelerated in the third quarter, but this is likely to be as good as it gets," Gareth Leather, senior Asia economist at Capital Economics, said.
"We expect lower commodity prices, tighter monetary policy and elevated inflation to drag on growth over the coming quarters."
While Indonesia's economy has seen an export boom this year, analysts expect a bleaker outlook as tightening monetary policy and rising inflation globally risk derailing the world economy.
Indonesia's economy expanded at its fastest pace in more than a year in the third quarter, underpinned by improved investment and government spending, but economists warned of tougher times ahead.
Southeast Asia's largest economy grew 5.72% year-on-year, according to data from Statistics Indonesia. That was up from a 5.44% pace in the second quarter but below the 5.89% expansion forecast in a Reuters poll of economists.
Unadjusted for seasonal factors, gross domestic product (GDP) rose 1.81% from the previous three months, above the 1.62% increase forecast in the poll.
Investment grew at its fastest pace in more than a year, private consumption remained robust, government spending shrank more slowly and exports rose in the double-digits, even as their net contribution to GDP fell as imports also increased.
"Economic growth in Indonesia accelerated in the third quarter, but this is likely to be as good as it gets," Gareth Leather, senior Asia economist at Capital Economics, said.
"We expect lower commodity prices, tighter monetary policy and elevated inflation to drag on growth over the coming quarters."
While Indonesia's economy has seen an export boom this year, analysts expect a bleaker outlook as tightening monetary policy and rising inflation globally risk derailing the world economy.