GDP of Indonesia in 2023 - Expenditure Approach, Sector Output, and Regional GDP

Indonesia’s economy has shown resilience in the early part of 2023 following a 5.3% GDP growth in 2022. The country’s exports continue to perform admirably, contrary to the regional trend, and manufacturing PMI has seen an upward movement in March due to increased demand and higher production levels. The robust growth was complemented by a strengthened Indonesian rupiah (IDR), driven by a combination of an improved current account and more dovish expectations from U.S. interest rates after the banking turmoil. This allowed the Bank Indonesia (BI) to hold rates for the third consecutive meeting, even though inflation was around 5%, surpassing the central bank’s target of 2% to 4%. The short-term outlook for the Indonesian economy seems to be more influenced by global markets rather than domestic fundamentals. While exports have remained strong for now, a sequential decli...