Krystal Tan – Economists and Khoon Goh – Head of Asia Research at ANZ offered their take on the latest Indonesian GDP report, released this Monday and showed that Southeast Asia’s largest economy expanded 5.05% in the second quarter from a year earlier.
Key quotes:
“¢ “Indonesia’s GDP growth eased slightly from 5.07% y/y in Q1 to 5.05% in Q2, the softest reading in two years.”
“¢ “While government spending, private consumption, and net export growth picked up, these were offset by softer investment growth and slower stock-building.”
“¢ “The soft Q2 outturn supports our view for further rate cuts. However, the current risk-off sentiment suggests the odds are not in favour of a back-to-back cut at Bank Indonesia’s meeting later this month (22 August).”
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