JAKARTA: Indonesia’s annual economic growth slowed more than expected in the third quarter to its weakest pace in two years, official data showed on Monday, amid shrinking exports due to falling commodity prices and weakening global trade.
Gross domestic product grew 4.94% annually in the July-September quarter, compared with a growth rate of 5.05% predicted by economists surveyed by Reuters. Growth was 5.17% in the second quarter.
On a non-seasonally adjusted, quarter-on-quarter basis, gross domestic product expanded 1.60% in the July-September period.
The Reuters survey had expected a 1.71% expansion in that period compared with the previous three months.
The government had expected an annual expansion of 5.1% in the third quarter, and full-year growth of the same figure, predicting that some of the decline in exports will be offset by rising spending related to campaigning for the Feb. 14, 2024 general elections.
In addition to falling exports, the central bank’s resumption of monetary tightening in October is further hurting growth outlook in Southeast Asia’s largest economy.
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Bank Indonesia unexpectedly raised interest rates last month to defend the rupiah, which has been facing pressures amid uncertainties related to US monetary tightening and the Ukraine and Middle East conflicts.
Last year, the resource-rich economy grew 5.3%, a nine-year high, riding on a global commodity boom.
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