Indonesia’s Q3 Growth Falls Short of Expectations Amid Global Uncertainty

Indonesia’s Economic Growth Slows in Q3 2023

Indonesia, the largest economy in Southeast Asia, reported slower-than-expected growth of 4.94% in the third quarter of 2023. This figure was below the anticipated 5.06% and decreased from a 5.17% increase in the previous quarter. The country’s gross domestic product (GDP) recorded a quarter-on-quarter growth of 1.60%, which remains behind last year’s third quarter growth rate of 5.73%.

The slower growth can be attributed to various factors including global economic uncertainty, the impacts of El Niño, and falling commodity prices, which resulted in a 4.26% contraction in exports. However, domestic sectors managed to maintain a positive contribution to growth. Key industries such as processing, transportation and warehousing, and construction have been vital in supporting the economy during this challenging period, according to Statistics Indonesia.

Despite facing external economic challenges, Indonesia’s domestic sectors have shown resilience, providing some stability. The strong performance of the processing, transportation and warehousing, and construction industries has helped the country navigate through global uncertainties and lower commodity prices.