Indonesia’s GDP predicted to rise 5 percent in Q2. (Souce: travelgay.com)

The Indonesia Finance Ministry forecasts that the Gross Domestic Product (GDP) growth of the country in the second quarter of 2022 will expand by 5 percent year-on-year, as consumption increases and net exports sustain growth despite recent economic challenges.

Deputy Finance Minister Suahasil Nazara announced that the second quarter was expected to see strong spending levels as a result of eased mobility restrictions and the Ramadan-Idul Fitri festive period, improved investment growth due to escalating business activity and stronger net exports in the context of high commodity prices.

According to the Central Statistic Agency (BPS) of Indonesia, the Southeast Asian country’s economy in the first quarter of 2022 grew 5.01 percent year-on-year, whereby consumption rose 4.34 percent.

Meanwhile, Indonesia’s trade surplus reached a record high in April, surpassing the previous peak in October 2021, as soaring coal, palm oil and metal prices boosted exports.

The Finance Ministry's projection comes as rising global inflation emerges as a key risk to Indonesia's economic growth, with rising prices on basic goods likely to deter spending.