The Indonesian economy reported its weakest growth in a year between January-March. The slowdown was the result of a fall in vital commodity prices. Indonesia's economy is the largest in Southeast Asia and it is a net exporter of oil & gas. The recent drop in oil prices is cited as the main cause of lower economic growth.
The global economy itself is now reeling from the shock it received during the pandemic. The complete lockdowns and ad-hoc stimulus packages given by governments are now catching up.
As inflation runs amok, the demand for goods is slowing down across the world, including in Indonesia. Household consumption, which accounts for half of Indonesia’s GDP, climbed up after the pandemic receded. However, consumption is now slowing down as Indonesia grapples with global inflation.
The Indonesian economy showed a 4.95% growth in Q1 from a year ago. Economists believe the GDP of Indonesia to be between 4.23% to 5.20%.
