How Indonesian GDP growth was less than the US (& less than zero) in the first quarter
May 8, 2024
A simple analysis of the economics data
May 8, 2024
A simple analysis of the economics data
- The headline announcements were first, last week, that the US economy as measured by GDP grew only 1.6% in the first quarter from a year ago. Then this week that the Indonesian economy (GDP) grew by just over 5%…
- But that’s ’real GDP’’ which is adjusted, normally down, for inflation. With US inflation at 3.5% now, US GDP in dollars grew by just over 5%. Here in Indonesia apparently our inflation was -1% as GDP in rupiah grew by 4%….
- But that’s in two different currencies. To compare they need to be in the same currency, dollars. US GDP stays the same at 5% but with a weaker rupiah Indonesia GDP in dollars was -1% in the first quarter from a year ago…