- Indonesia’s GDP contracted by 0.74% YoY in Q1-2021.
- Leading the charge this time is the external sector. With the remarkable recovery of China and the US driving up global trade, both exports as well as investment (likely driven by export-oriented manufacturers) recorded some of the largest gains last quarter.
- On the domestic side however, continued mobility restrictions and low vaccination rates continue to drag on household consumption, which continues to recover at a more modest pace.
- Although we may see some upside for growth in Q2-2021 due to the effects of Ramadan, prospects for growth beyond that will depend on the progress of vaccinations as well as the virus’ spread.
