Consumer confidence and retail sales growth in Indonesia are improving, signaling increased consumer spending potential in 2024 and 2025, driven by falling inflation and economic growth.
..
Consumer confidence and retail sales growth in Indonesia are improving, signaling increased consumer spending potential in 2024 and 2025, driven by falling inflation and economic growth.
Key takeaways
Consumer confidence and retail sales growth in Indonesia are on the rise again, suggesting positive prospects for consumer spending in 2024.
Falling inflation is increasing purchasing power, while robust economic growth is leading to improved employment opportunities.
The 2025 consumer spending outlook is positive due to a stronger rupiah, easing monetary policy, and lower inflation, boosting real wage growth.
We expect a small deceleration in real consumer spending growth in Indonesia in 2024 to 5.0% y-o-y, as income growth remains muted, monetary policy remains tight and the currency weakens. However, this is still a solid figure that will be supported by the strong economy and boosted…