Indonesia: GDP contracts at milder pace in the fourth quarter
GDP slid at a more moderate rate of 2.2% year-on-year in the fourth quarter of 2020, above the 3.5% contraction seen in the third quarter, as domestic lockdown measures were eased somewhat and external demand recovered slightly.
Private consumption dropped a softer 3.6% year-on-year in Q4, following the 4.0% contraction in Q3. Fixed investment also fell at a milder pace of 6.2% in Q4, up from the 6.5% contraction recorded in the prior quarter. In contrast, public consumption cooled, growing 1.8% in Q4 (Q2: +9.8% yoy), as the government’s stimulus measures waned.
On the external front, exports of goods and services dropped at a softer rate of 7.2% in Q4 (Q3: -11.7% yoy). Likewise, imports of goods and services declined at a milder pace of 13.5% in Q4 (Q3: -23.0% yoy). As a result, the external sector made a positive contribution to growth.