Indonesia’s Fastest Expansion in Nine Years Faces New Risks

  • GDP growth returns to its pre-pandemic trajectory of around 5%
  • Softer consumption and exports warn of uphill battle this year
The Marco Polo Marine Ltd. shipyard in Batam Island, Indonesia.Photographer: Edwin Koo/Bloomberg
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Just as the pace of Indonesia’s economic growth returned to pre-pandemic levels, a slowing global economy has emerged as the biggest threat to sustaining that performance.

Data on Monday showed gross domestic product growth accelerated 5.31% last year, bringing Southeast Asia’s largest economy back to its pre-pandemic trajectory of about 5% annual growth. That was also the fastest pace since 2013 and was in line with the 5.3% median estimate in a Bloomberg survey.