Indonesia is facing a range of difficulties as the prices of key commodities like coal and palm oil have plummeted and the global economy falters on the back of the US-China escalating trade war.(Photo: AFP)Hanoi (VNA) - Indonesia on August 5 reported its lowest rate of quarterly growth intwo years as Southeast Asia's biggest economy has been affected by US-Chinatrade tensions.
The country’seconomic growth weakened to 5.05 percent in the second quarter of 2019 as its exportsand investment dropped. The figure was lower than a 5.27 percent expansion inthe same period last year.
Indonesia is facinga range of difficulties as the prices of key commodities like coal and
palm oil haveplummeted and the global economy falters on the back of the US-China escalatingtrade war.
Thechallenges facing Indonesia are not easy to overcome due to a significant slowdownin the global economy, said head of the statistics agency Suhariyanto.
This was alsoa new challenge to Indonesian President Joko Widodo, who was re-elected earlierthis year largely on his infrastructure-driven bid to stimulate the economy.
Analysts saidWidodo failed to hit a promised seven-percent target during his first term
and couldstruggle to lift the economy off its current level.
Last month,Indonesia cut interest rates for the first time in nearly two years in a bid toboost its economic growth.-VNA
VNA
