Indonesia GDP growth: still lacklustre - ANZ

Krystal Tan - Economists and Khoon Goh - Head of Asia Research at ANZ offered their take on the latest Indonesian GDP report, released this Monday and showed that Southeast Asia’s largest economy expanded 5.05% in the second quarter from a year earlier.
 
Key quotes:

   •  “Indonesia’s GDP growth eased slightly from 5.07% y/y in Q1 to 5.05% in Q2, the softest reading in two years.”
 
   •  “While government spending, private consumption, and net export growth picked up, these were offset by softer investment growth and slower stock-building.”
 
   •  “The soft Q2 outturn supports our view for further rate cuts. However, the current risk-off sentiment suggests the odds are not in favour of a back-to-back cut at Bank Indonesia’s meeting later this month (22 August).”