business

Airlangga Projected Economic Growth In The Third Quarter Of 2024 At 5.05 Percent

Coordinating Minister for Economic Affairs Airlangga Hartarto has projected that the economic growth for the third quarter of 2024 will be around 5.05 percent, similar to the second quarter of 2024. It is important to note that the Central Statistics Agency (BPS) is scheduled to release Indonesia's economic growth figures (Gross Domestic Product/GDP) for the third quarter of 2024 later today, Tuesday (November 4, 2024).

"The economic growth for Indonesia in the third quarter of 2024 is expected to be in line with the previous quarter," he stated during a meeting at his office in Jakarta on Monday (November 4, 2024). However, Airlangga refrained from providing a specific figure when asked if the economic growth for this quarter could exceed 5 percent.

Josua Pardede, Chief Economist at Bank Permata, anticipates that the economic growth for the third quarter will be slightly lower than the previous quarter, estimating it at 5.02 percent year-on-year (yoy). "The economic growth for the third quarter of 2024 is projected to be around 5.02 percent yoy, down from 5.05 percent yoy in the previous quarter," he remarked when contacted by Kompas.com on Monday.

During this period, economic growth is still supported by household consumption, which is expected to grow by 5.03 percent yoy. This figure is higher than the 4.93 percent recorded in the second quarter of 2024 but lower than the 5.05 percent yoy seen in the third quarter of 2023. The increase in household consumption is also indicated by several indicators, such as:

• Retail sales at the conclusion of the third quarter of 2024 recorded a year-on-year increase of 4.7 percent. This figure significantly surpasses the 2.72 percent year-on-year growth observed in the second quarter of 2024, as well as the 1.48 percent year-on-year growth noted in the third quarter of 2023.

• Consumer Confidence Index at the end of the third quarter of 2024 also reflects a positive trend, with an approximate year-on-year growth of 1.5 percent compared to the previous quarter, which experienced a decline of 2.98 percent year-on-year.

The robust consumption is supported by a trend of declining supply-side inflation, particularly in volatile prices and government-regulated prices. Meanwhile, core inflation is expected to exhibit an upward trend, reaching 2.09 percent year-on-year by the end of the third quarter of 2024, he explained.

---

Tag: Airlangga Hartarto BPS Central Statistics Agency Gross Domestic Product