Consumption, export boost for economy in Q2: economist

Consumption, export boost for economy in Q2: economist

Illustration: Shoppers try on clothes at the Thamrin City Muslim fashion zone in Jakarta. Household consumption contributed around 2.92 percent to the total GDP growth in the second quarter of 2022. (ANTARA FOTO/ Hafidz Mubarak A/ cellphone) (ANTARA FOTO/Hafidz Mubarak A)

The four sectors are the sectors that are the worst affected by the pandemic
Jakarta (ANTARA) - Indonesia's economy grew 5.44 percent year on year in the second quarter of 2022 due to an increase in consumption, investment, and exports, Bank Danamon economist Irman Faiz has said.

 

"Second-quarter GDP (gross domestic product) was mainly supported by stronger household consumption and strong net exports," he informed here on Friday.

 

Household consumption contributed around 2.92 percent to the total GDP growth in the second quarter as Eid al-Fitr festivities helped restore economic activity to almost normal conditions, Faiz said.

 

Meanwhile, net exports added 2.14 percent to the total growth, which was in line with the trade surplus amid higher commodity prices.



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Then, fixed investment also contributed 0.94 percent to the total GDP growth in the second quarter.

 

A conducive recovery in demand was also reflected in the sectoral side, with four sectors showing growth of around 50 percent, he noted.

 

"The four sectors are the sectors that are the worst affected by the pandemic," said Faiz.

 

The four sectors were the manufacturing industry, which grew 0.82 percent; transportation, which expanded 0.76 percent; wholesale and retail trade, 0.58 percent; and communications, 0.50 percent.

 

Overall, Faiz said, he is optimistic that the Indonesian economy will grow 5.1 percent year on year in 2022, given that the growth in the past two quarters has been above 5 percent.


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Moreover, he projected that the GDP in the third quarter of 2022 will grow above the level of the second quarter, in line with the low baseline in the realization of the third quarter of the previous year.

 

He said the leading indicators for July 2022 also showed stronger activity, such as the manufacturing Purchasing Manager's Index (PMI), which was recorded at 51.3.

 

"We are still optimistic about the outlook for (year-on-year) GDP growth of 5.1 percent for the full year,” he added.


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