Saturday, June 1, 2019

Indonesia: growth continues

Indonesia has grown reasonably fast (5-6% p.a.) over the last 2 decades, and growth barely stuttered during the GFC (Global Financial Crisis) in 2009.   It's around 2% (or a bit more) of world GDP now, so not a giant like China or India, but as big as Mexico or Canada.  GDP data are a little out of date, but the latest PMI (for May) suggests that growth remains strong.

It's interesting that Europe and the US are slipping into recession, but several smaller developing economies are still doing OK.  Bigger developing economies, like India, seem to be more closely tied to world economic fortunes.  Its growth has fallen from 8% a year ago to just 5.8% in Q1/2019.


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