Indonesia likely to post weak GDP growth rate in Q2 15

Indonesia's GDP data for Q2 is likely to release on 5th August. The economy, after having recorded the lowest ever growth rate (as per the new data set) of 4.71% yoy during Q1 2015, a mild uptick during Q2 2015 to 4.81% yoy is expected, estimates Societe Generale.

Indonesia's domestic demand, which remained fairly strong during 2014, is showing clear signs of deceleration during 2015. High frequency indicators, such as loan growth (both consumption and investment), vehicle sales, imports of raw materials and capital goods, all point toward weak consumption and investment demand. Car sales have contracted for the 12th straight month while growth in loans outstanding remains anaemic.