Trade is expected to have made a smaller contribution to Indonesia's economic growth in 2Q due to slowing export growth and higher fuel and refined oil imports, DBS senior economist Radhika Rao says in a note. While government spending helped support economic activity in 1H, fiscal expenditure is expected to moderate in 2H as lower oil prices reduce subsidy costs, she reckons. Indonesia's trade conditions could improve in 3Q once global oil prices stabilize and shipping through the Strait of Hormuz recovers. DBS expects Indonesia's economy to grow 5.1% in 2026 and sees another 25 bps rate hike from Bank Indonesia, depending on market conditions. (yingxian.wong@wsj.com)
Dow Jones Newswires
Trade Contribution to Indonesia's Economic Growth Likely Easing in 2Q — Market Talk
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Trade is expected to have made a smaller contribution to Indonesia's economic growth in 2Q due to slowing export growth and higher fuel and refined oil imports, DBS senior economist Radhika Rao says in a note. While government spending helped support economic activity in 1H, fiscal expenditure is e…