Investing.com -- Indonesia’s economy, the largest in Southeast Asia, has reported its weakest growth in over three years for the first quarter. The growth rate for this period was 4.87% year-on-year, marking a decrease from the previous quarter’s 5.02% and the slowest rate since the third quarter of 2021. This figure aligns closely with analysts’ forecasts, which predicted a growth rate of 4.91%. The rest of the year is expected to see further challenges due to global trade disputes and a decline in household spending. These factors are anticipated to create headwinds for the country’s economic growth. President Prabowo Subianto, who assumed office last year, had committed to boosting Indonesia’s GDP growth to 8% during his five-year term. However, the slowing global growth due to the ongoing trade war, weakening domestic demand, and a constrained budget position present significant obstacles to achieving this target. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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