Indonesia's GDP growth accelerates, but uneven recovery persists

Indonesia's economy demonstrated robust growth in the first quarter of 2024, expanding by 5.11% year-on-year. This expansion was primarily fueled by strong domestic demand, with household consumption increasing by 4.91% and investment growing by 3.46%.

However, the external sector faced headwinds, as exports contracted by 4.43% amid weakening global demand. Imports also saw a slight decrease of 1.27%. The manufacturing sector, a key component of the Indonesian economy, experienced a slowdown, registering a growth of 4.14%.

Despite the overall positive GDP figures, analysts from Bank Indonesia have cautioned that the economic recovery remains uneven. Certain sectors continue to lag, and the persistent weakness in global demand poses a challenge to export-oriented industries. The central bank anticipates that the economy will continue to grow, but the pace and breadth of this growth will be influenced by both domestic resilience and external factors.