Indonesia’s economy advanced 3.31% quarter on quarter (q/q) in the second quarter (Q2) of 2021, after a downwardly revised 0.92% fall in Q1. This was the first quarterly growth since Q3 2020, boosted by Eid-ul Fitr celebrations and an acceleration in COVID-19 vaccinations, with both household consumption (1.27% vs -0.58 in Q1) and government spending (29.07% vs -43.69%) rebounding. Also, external demand contributed positively, as exports rose 6.58% (vs 8.21% in Q1) while imports grew 5.81% (vs 6.16%). Meantime, fixed-investment fell further (-2.69% vs 2.21%).
Indonesia’s economy expanded by 7.07% year on year (y/y) in Q2 this year, rebounding sharply from a marginally revised 0.71% contraction in the previous quarter. It was the first time expansion in the economy in five quarters and the strongest pace since Q4 of 2004, due to a low base effect from last year. Both household consumption (5.93% vs -2.22% in Q1) and fixed investment (7.54% (vs -0.23%) rebounded while external demand contributed positively to the GDP, as exports jumped by 31.78%, while imports rose at a softer 31.22%. Meanwhile, government spending expanded faster (8.06% (vs 2.34%).