Indonesia's GDP contracted by 2.2% y/y in Q4 2020

In Q4 2020, Indonesia's GDP continued to contract, albeit at the softer pace of 2.19% y/y, as the country continued to struggle with the pandemic. This led to a year average decline of 2.07% for 2020, which was the first annual contraction since 1998.

Household consumption, which accounts for more than 50% of Indonesia’s GDP, contracted by 3.61% y/y in Q4 2020. Gross fixed capital formation (investment spending) contracted by 6.15% y/y in Q4 2020, while government consumption increased at the slower pace of 1.76% y/y following a sharp rise of 9.76% y/y in Q3 2020 when the government loosened the purse strings to alleviate the effects of the pandemic. Exports of goods and services declined by 7.21% y/y in Q4 2020, while imports contracted by 13.52% y/y.

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