The Central Statistics Agency (BPS) reported that almost all expenditure components in the Gross Domestic Product (GDP) recorded growth in Q1 2022, in line with the ongoing economic recovery.
Household consumption, the main contributor to GDP from the expenditure side, grew by 4.34% (year-on-year/yoy) in Q1 2022. This component contributed 2.35 percentage points to the overall annual GDP growth rate in this quarter.
Gross fixed capital formation (GFCF), the second largest contributor, grew by 4.09% (yoy) in the same period, marking a resurgence in investment activity.
Exports grew by 16.22% (yoy), while goods imports grew by 15.03% (yoy). Thus, net exports contributed 0.82 percentage points to the economic growth rate in Q1 2022.
However, not all expenditure components recorded positive growth. Government spending experienced an annual contraction of 7.74% (yoy) in the first three months of 2022.
"We see that Indonesia will record higher GDP growth in 2022, driven by strengthening private consumption in line with the easing (of community activity restrictions) that improves mobility," said Bank Mandiri economist Faisal Rachman in his analysis released on Monday (May 9, 2022).