Indonesia’s GDP Surprise Masking Fundamental Growth Issues

Indonesia surprised markets on Wednesday by dishing out better-than-expected growth figures, raising the question whether the upbeat numbers are a mere flash in the pan.

Gross domestic product grew 5.7 percent in the fourth quarter from the same period a year earlier, beating the 5.3 percent consensus found in a Reuters poll of analysts. It marked a faster expansion than the 5.6 on-year percent rate recorded in the third quarter.

“Is the headline number an aberration in a moderating trend or has the economy really bottomed?” Robert Prior-Wandesforde of Credit Suisse wrote in a note. “Our take on the fundamentals would suggest the former is the more likely hypothesis.”

CNBC

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