Monday, 20 September, 2021

Indonesian economy grows for first time in five quarters

Indonesian economy grows for first time in five quarters

JAKARTA: Indonesia’s economy bounced back in the second quarter to post its first growth in more than a year, but analysts warned the recovery might be short-lived as Covid-19 surges.

Southeast Asia’s largest economy grew by 7.07 percent in the April-to-June quarter compared with the same period last year, the Central Statistics Agency (BPS) said Thursday, reports AFP.

The figure is higher than a projection by the Central Bank of Indonesia, which predicted growth of 6.75 percent.

The expansion, the first positive figure in five quarters, was driven by a pick-up in exports and imports as Indonesia’s trading partners also saw greater activity.

“For the economy to keep growing, the key is how we manage the health sector, comply with health protocols and vaccinate people to reach herd immunity,” BPS head Margo Yuwono told a press conference.

Domestic consumption also contributed to the comeback with motorcycle and car sales jumping 2.5 and 7.5 percent respectively compared with the first quarter.