Indonesia’s GDP Surprise Masking Fundamental Growth Issues

Indonesia surprised markets on Wednesday by dishing out better-than-expected growth figures, raising the question whether the upbeat numbers are a mere flash in the pan.

Gross domestic product grew 5.7 percent in the fourth quarter from the same period a year earlier, beating the 5.3 percent consensus found in a Reuters poll of analysts. It marked a faster expansion than the 5.6 on-year percent rate recorded in the third quarter.

“Is the headline number an aberration in a moderating trend or has the economy really bottomed?” Robert Prior-Wandesforde of Credit Suisse wrote in a note. “Our take on the fundamentals would suggest the former is the more likely hypothesis.”


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu