Indonesia's economy expanded in Q2 2021 for the first time in four quarters

Indonesia's GDP increased in Q2 2021 by 7.07% y/y in real terms following a contraction of 0.71% y/y in Q1 2021 and four consecutive quarters of economic decline. The second quarter upturn was the strongest annual growth rate since Q4 2004, supported by economic policy stimulus and global demand, but it was also exaggerated by a low base.

Household consumption increased by 5.93% y/y in Q2 2021, government consumption by 8.06% y/y, and gross fixed capital formation (investment spending) by 7.54% y/y. Exports of goods and services shot up by 31.78% y/y in Q2 2021, while imports matched it with a rise of 31.22% y/y.