Indonesia recorded 5.31% economic growth in 2022, the CNA reported on the 6th. According to the media, Indonesia’s Bureau of Statistics announced that last year’s gross domestic product (GDP) rose 5.31% year-on-year.
Indonesia’s GDP accelerated from a 3.69% increase last year, marking the first high growth rate in nine years since 2013. The market’s expected median of 5.29% was also slightly higher.
Indonesia, the largest economy in Southeast Asia, also recorded an all-time high in exports as consumption recovered due to the lifting of COVID-19 measures and international commodity prices rose.
GDP in the fourth quarter of October-December 2022 increased by 5.01% from the same period last year. The growth rate exceeded the expected median of 4.84% but slowed sharply from 5.72% in the third quarter of July-September.
It has shown low growth since the third quarter of July and September 2021. The end of the rise in product prices was mainly affected.
Analysts say that Indonesia’s economy in 2023 is likely to be burdened by slowing overseas demand, soaring inflation and rising interest rates.
Indonesia, a resource country, contributed to economic growth as commodity prices soared last year due to Russia’s invasion of Ukraine, but overseas demand has been on the decline in recent years.
“The growth rate is likely to slow further over the next few quarters,” analysts said, adding that the global economy is in a severe situation this year as the U.S. is expected to fall into an economic recession.
Exports to Indonesia reached a record high of $292 billion (approximately 366.314 trillion won) in 2022.
A government official said, “There is a possibility that economic activity will slow down this year,” adding, “Exports could be sluggish as commodity prices fall further due to the sluggish global economy.”
The Economist diagnosed, “The resumption of Chinese economic activities is supporting demand, but commodity prices may be weak as supply growth and demand decline are expected in the U.S. and the eurozone.”
