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Indonesia's Economy Grows 5.03%, Misses 8% Target

2/6/2025

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Summary

Story summary

Indonesia's economy grew 5.03% in 2024, slightly lower than 5.05% in 2023, falling short of the 8% target.
GDP per capita increased to $4,960.33, with a nominal GDP of $1,357 billion.
Growth stemmed from exports, household consumption, and government spending, despite a shrinking middle class and global demand challenges.
The IMF ranks Indonesia 8th globally for GDP based on purchasing power parity (PPP) at $4.98 trillion.

History

Historical Context

Indonesia's 5.03% economic growth in 2024 reflects ongoing challenges reminiscent of the 1997 Asian financial crisis. Back then, rapid growth faltered, leading to a severe economic downturn. Today, global demand issues and a shrinking middle class echo that historical struggle, highlighting Indonesia's ongoing economic vulnerabilities.

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Story summary

Indonesia's economy grew 5.03% in 2024, slightly lower than 5.05% in 2023, falling short of the 8% target.
GDP per capita increased to $4,960.33, with a nominal GDP of $1,357 billion.
Growth stemmed from exports, household consumption, and government spending, despite a shrinking middle class and global demand challenges.
The IMF ranks Indonesia 8th globally for GDP based on purchasing power parity (PPP) at $4.98 trillion.

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