Further GDP Acceleration Hinges on Consumption
GDP acceleration keeps in check from 3Q17 to the current time. The GDP of 3Q18 grew by 5.17%. Consumption, contributing 54% to overall GDP and sloping above 5% within the last two quarters, is still the biggest contributor to GDP of 2018. We estimate GDP of 2019 to hover near 5.20%–5.25% and Indonesia to remain resilient enough to face headwind of the 3Q16–2Q17 lacklustre economic growth.
Inflation: A Determinant for Acceleration in Consumption
Inflation is entwined with Indonesia’s consumption growth. The inflation stably hovering near 3.0%–3.5% since 2016 is an engine for consumption to kick at higher pace.
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