Return to Equilibrium

The phenomenon of high growth in the second quarter also occurred in Indonesia\'s trading partners, such as the United States, China, the nations of the European Union and India.

KOMPAS/RADITYA HELABUMI

Residents wearing masks walk carrying shopping bags after shopping at Karang Anyar Market, Sawah Besar, Central Jakarta, Thursday (5/8/2021).

The annual economic growth rate of 7.07 percent recorded in the second quarter of 2021 was the highest since 2005. In the previous quarter, Indonesia\'s economy shrank by 0.74 percent. With this growth in the second quarter, by definition, Indonesia is out of recession.

The rise in the economic growth is the result of a low base-effect because, up to and including the first quarter of 2021, the Indonesian economy was contracting. Stagnant demand also played a key role.