Indonesian economy grows for first time in more than one year

Illustrative image (Photo: Getty Images)

Jakarta (VNA) - Indonesia's economy grew in the second quarter of 2021, marking the first growth in more than one year.

However, analysts warned the recovery might be short-lived due to the resurgence of COVID-19 outbreaks.

The Central Statistics Agency (BPS) said Southeast Asia's largest economy grew by 7.07 percent in April-June as compared with the same period last year, higher than the 6.75 percent projection made by Bank Indonesia.

The expansion, the first positive figure in the past five quarters, was driven by a pick-up in exports and imports as Indonesia's trading partners also saw greater activity.

Domestic consumption also contributed to the comeback with motorcycle and car sales jumping 2.5 and 7.5 percent, respectively, compared with the first quarter.

Greater business activity and more public movement as a result of pandemic restrictions being relaxed also contributed to the recovery.

But analysts believed Indonesia will struggle to record continued growth as a virus surge triggered by the Delta variant wracks the country. Till now, the country has reported more than 3.5 million infections and over 100,000 deaths from COVID-19./.