South Asia’s largest economy, Indonesia, grew by 6.4% from a year earlier, more than analysts’ expected growth rate of 6.1%.
The growth comes amid high domestic consumption which accounts for almost 60% of Indonesia’s overall economy. Domestic consumption was boosted due to factors such as low interest rates, stable consumer price growth and strong consumer and business confidence.
Though Indonesia remains one of the fastest growing economies, as per today’s data, the country’s economy is still vulnerable to the slowing growth in China.
China is a key market for Indonesia’s exports of commodities and natural resources.
If China’s economy continues to slump, Indonesia’s commodities will be hardly hit, resulting in a decline in prices, which may hurt Indonesia’s growth.
