Indonesia’s Q4 GDP accelerates on easing COVID-19 curbs, high exports

A woman wears a protective mask in a shopping mall after Indonesia confirmed its first cases of coronavirus disease (COVID-19) in Jakarta, Indonesia March 5, 2020. REUTERS/Ajeng Dinar UlfianaRegister now for FREE unlimited access to Reuters.comQ4 GDP +5.02% y/y, vs +4.90% in poll2021 GDP +3.69% y/y, following -2.07% in 2020JAKARTA, Feb 7 (Reuters) – Indonesia’s economic growth accelerated in the final quarter of last year following the easing of anti-virus mobility restrictions and record high exports, which were driven by stronger commodity prices.Southeast Asia’s largest economy grew 5.02% on a yearly basis in the October-December quarter, compared with 3.51% growth in the previous quarter, data from Statistics Indonesia showed on Monday. A Reuters poll had expected fourth-quarter growth of 4.90%.For the whole of 2021, gross domestic product expanded 3.69% annually, compared with a 2.07% contraction the year before, as the country recovered from the impact of the COVID-19 pandemic.Register now for FREE unlimited access to Reuters.comHowever, the outlook for this year is clouded by rising COVID-19 cases, potential financial market volatility due to a global monetary tightening and Indonesia’s own rollback of monetary and fiscal stimulus.”Because our COVID cases were high in the third quarter, people’s mobility was restricted and economic activity slowed down … all activities, by the government and the private sector, resumed in the fourth quarter,” said Margo Yuwono, head of Statistics Indonesia.Yuwono also noted that high prices of Indonesia’s main commodities, such as palm oil, coal and nickel, had driven exports in the October-December quarter.Indonesia was hit by a deadly wave of COVID-19 cases in July-August, but mobility curbs eased towards the end of August as infections fell.COVID-19 cases are currently rising again in Indonesia due to the spread of the Omicron variant, with Sunday’s 36,057 new cases the highest since August. However, authorities have not reimposed strict anti-virus measures.($1=14,373.0000 rupiah)Register now for FREE unlimited access to Reuters.comReporting by Gayatri Suroyo, Fransiska Nangoy and Stefanno Reinard Sulaiman; Editing by Sam HolmesOur Standards: The Thomson Reuters Trust Principles.