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Indonesia GDP growth beats forecast, but composition raises concerns

Societe Generale said public spending drove the 2Q26 5.3% growth, while non-government activity, private consumption, and manufacturing stayed weak.

Reported · Written up by our desk · EM Currencies

Societe Generale economist Kunal Kundu said Indonesia’s 2Q26 gross domestic product rose 5.3% year on year, ahead of the bank’s 5.1% forecast.

The economist said the growth was mainly supported by public spending, while non-government GDP, private consumption, and manufacturing remained weak, clouding the quality of the expansion.

Kundu added that investment improved but also lifted imports, and a large statistical discrepancy made it harder to assess growth composition.

Separately, FXStreet highlighted that, in the near term, US nonfarm payrolls are expected to be a key driver for major currency moves, with GBP/USD and EUR/USD both showing renewed pressure around specific levels.

Latest closeEUR/USD 1.152 ▼0.3%|GBP/USD 1.345 ▼0.1%

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