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Indonesia economic growth GDP grew 2.8%

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Jakarta – Indonesia’s economic growth surprisingly picked up in the second quarter of this year, signalling that Southeast Asia remains resilient to the global slowdown.

Indonesia’s statistics bureau said gross domestic product growth last quarter was 6.4% from a year earlier against 6.3% in the first quarter, helped by domestic consumption and investment. GDP grew by 2.8% on a quarterly basis, although the figures are not seasonally adjusted.

Economists had forecast that annual growth in Southeast Asia’s largest economy would ease to 6.1%, citing shrinking exports.

But buoyant domestic demand has kept growth on an even keel.

Thailand and Malaysia are also expected to post a pick up in growth in

the second quarter versus the first quarter, economists have said.

Investors are pouring into Southeast Asian stock markets, with bourses in Manila, Ho Chi Minh, Bangkok and Singapore all seeing double-digit rises this year. Investors are betting on long-term growth – IHS Global Insight forecasts the region’s GDP will overtake Japan by 2028. -livemint