Indonesia GDP Growth Tops Expectations

(RTTNews) - Indonesia's economic growth accelerated in the third quarter driven by strong increases in government spending and investment, official data showed Thursday. Gross domestic product grew 5.47 percent year-on-year in the third quarter, Statistics Indonesia said.

Economists had forecast the growth rate to ease to 5.2 percent from 5.29 percent seen in the second quarter.

On a quarterly basis, GDP grew 1.59 percent, which was also faster than forecast of 1.30 percent.

The expenditure-side of GDP showed that government spending logged a robust annual growth of 8.95 percent. At the same time, household spending increased 5.04 percent and gross fixed capital formation moved up 6.06 percent.

Regarding foreign trade, data showed that exports rose 4.59 percent and imports advanced 7.31 percent.

During January to September, the economy expanded 5.45 percent from the same period last year.

Last month, Bank Indonesia maintained its benchmark rate but raised the deposit facility rate by 25 basis points. The bank projected Indonesia's economic growth to be in the range of 4.9-5.7 percent in 2026.