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Indonesia annual Q1 GDP growth slowest in more than three years

Analysts expect slower expansion this year, as weakening domestic demand and ongoing trade wars threaten to dampen exports

 Elisa Valenta
Published Mon, May 5, 2025 · 01:32 PM — Updated Mon, May 5, 2025 · 04:13 PM
    • The Muslim-majority nation saw a modest 4.89% increase in consumption during the first quarter, driven by the Ramadan and Idul Fitri period in March.
    • The Muslim-majority nation saw a modest 4.89% increase in consumption during the first quarter, driven by the Ramadan and Idul Fitri period in March. PHOTO: AFP

    [JAKARTA] Indonesia’s economy hit the brakes in the first quarter, as sluggish consumer spending and tightened government purse strings cast a shadow over growth.

    The country’s gross domestic product grew 4.87 per cent year on year in Q1 – its weakest performance since 2021, Statistics Agency data showed on Monday (May 5). That figure fell short of both the previous quarter’s 5.02 per cent expansion and the 4.93 per cent median forecast in a Bloomberg survey.

    On a quarter-to-quarter basis, the economy shrank by 0.98 per cent, reflecting a soft start to the year for South-east Asia’s largest economy.

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