Indonesian Economy Contracts 1.7% in Q4
Indonesia's gross domestic product shrank 1.70 percent quarter-on-quarter in the three months to December of 2017, after a marginally revised 3.19 percent growth in the previous quarter and in line with market consensus. It was the first quarterly contraction since the first quarter of the year, as private consumption stagnated and net exports contributed negatively.
On the expenditure side,
private consumption showed no growth (0.01 percent vs 3.44 percent in Q3) and net external demand contributed negatively, as imports jumped 9.47 percent (vs 9.01 percent in Q3) and exports rose only by 1 percent (vs 8.80 percent in Q3). In addition, fixed investment rose at a slower 4.73 percent, compared with 5.23 percent in the previous three-month period while government spending surged 39.94 percent, following a 5.30 percent advance.
On the production side, agriculture was the largest contributor to the output contraction (-21.60 percent vs 4.32 percent in Q3), followed by manufacturing (-1.08 percent vs 2.09 percent), wholesale and retail trade (-1.39 percent vs 2.98 percent) and finance and insurance (-2.97 percet vs 3.01 percent). On the other hand, output grew for: mining and quarrying (0.29 percent vs 0.28 percent); electricity and gas (1.58 percent vs 5.32 percent); construction (4.81 percent vs 4.75 percent); water and waste management (1.91 percent vs 1.57 percent); transportation and storage (0.48 percent vs 5.38 percent); hotels and restaurants (1.67 percent vs 1.42 percent); communication and information (1.98 percent vs 0.77 percent); real estate (0.54 percent vs 0.32 percent); business services (1.51 percent vs 2.62 percent); government administration (13.30 percent vs 2.37 percent); education (13.18 percent vs 1.39 percent); healthcare (5.72 percent vs 1.77 percent); and other services (1.56 percent vs 2.70 percent).
Year-on-year, the economy advanced 5.19 percent, following a 5.06 percent growth in the previous period and beating market expectations of 5.12 percent. It was the strongest pace of expansion since the fourth quarter of 2013.
Considering 2017 full year, the GDP expanded by 5.07 percent, compared with 5.02 percent in 2016 and slightly above market consensus of 5.06 percent. It was the strongest growth rate since 2013, when the GDP rose by 5.56 percent.
2/5/2018 5:12:42 PM