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In the view of the analysts at Australia and New Zealand Banking Group (ANZ), weakening domestic consumption knocked off the Indonesian GDP growth to its slowest in three years.

Key Quotes:

“Indonesia’s economy ended 2019 on a weak note, with GDP growth moderating further to 4.97% in Q4 from 5.02% y/y in Q3, the softest reading in three years.

Domestic demand continued to soften, while a sharper contraction in imports relative to exports resulted in a boost to net export growth.

Unless commodity prices stage a strong rebound or global growth picks up materially, Indonesia’s growth is likely to remain stuck around the current pace in the coming quarters, in our view.”

  • USD/IDR: Rupiah remains pressured as Indonesia’s Q4 GDP disappoints with 4.97%