Indonesian Economy Predicted to be Powerless in Q2 2024, Here’s the Explanation

JAKARTA – The Institute for Economic and Community Research, Faculty of Economics and Business, University of Indonesia (LPEM FEB UI) estimates that the Indonesian economy in general will be relatively weak in Q2 2024 compared to the previous quarter. It predicts that the economy will grow by only 5.1 percent.

“GDP is estimated to grow by 4.97 percent to 5.01 percent in the second quarter of 2024 and 5.0 percent to 5.1 percent for the whole of 2024,” explained Macroeconomics and Financial Markets Economist at LPEM FEB UI Teuku Riefky in his official statement, Friday (2/8/2024).

Riefky said this was due to the absence of seasonal factors that trigger economic activity, high global uncertainty, and continuing structural problems having a negative impact on GDP growth.

Furthermore, uncertainty about the direction of policy by the next government also encourages people to hold back their consumption and investors to adopt a wait-and-see approach. Thus, GDP growth is likely to slow in Q2 2024.

“We estimate that Gross Domestic Product (GDP) will grow by 4.99 percent with an estimated range of 4.97 percent to 5.01 percent year on year (yoy) in Q2 2024 and 5.1 percent for the whole of 2024 with an estimated range of 5 percent to 5.1 percent,” concluded Riefky.

As is known, the Central Statistics Agency is scheduled to announce the release of Indonesia’s Economic Growth for the Second Quarter of 2024 on Monday (5/8/2024).

(fch)