Indonesia’s economic growth picked up pace and topped forecasts in the third quarter, official data showed Thursday, thanks to strong household spending and investment.
Southeast Asia’s largest economy expanded 5.5% in July-September, from 5.3% in the previous three months.
The reading beat the 5.2% growth projected in a survey of economists by Bloomberg.
The expansion was driven in part by a strong growth in household and government expenditure as well as investment, Statistics Indonesia official Moh Edy Mahmud told a news conference.
Household expenditure, the largest contributor to the growth, climbed 5% year-on-year, while investment jumped 6.1%.
Government expenditure grew by nearly 9%.
Manufacturing, trade, construction and the information and communication sectors also contributed.
President Prabowo Subianto is chasing a growth target of 8% by 2029 — an ambitious goal that some experts warn could be hard to reach.
The latest reading showed domestic demand was “firmer” than expected, with investment and government expenditure remaining “robust”, said Bank Danamon Indonesia economist Irman Faiz.
He said the expansion momentum could be carried to the fourth quarter and tipped the economy to grow 5.4% this year, and 5.1% in 2027.