Indonesia GDP Slows to 5.81% YoY in Q2

In the second quarter of 2013, Indonesian economy slowed for the fourth consecutive quarter to 5.81 percent yoy, down from 6.02 percent recorded in the first three months of 2013. The increase in government spending was not enough to offset slowing private consumption and investment.

On the production side, growth occurred in all sectors except for mining and quarrying, which shrank again by 1.2 percent over a year earlier.

The highest growth rates were recorded in the transport and communication sector (up by 11.5 percent, from 9.9 percent in the previous quarter), financial and real estate (8.07 percent, from 8.35 percent recorded in the first quarter), construction (6.88 percent from 7 percent) and electricity, gas and water (6.6 percent from 6.5 percent). Trade, hotel and restaurants expanded 6.5 percent, manufacturing 5.9 percent (same rates as in the previous quarter) and agriculture slowed to 3.2 percent, from 3.6 in the first quarter. 

On the expenditure side, both government consumption and exports accelerated in the second quarter to 2.1 percent and 4.8 percent yoy, respectively, from 0.42 percent and 3.6 percent in the previous quarter, respectively. Imports grew 0.62 percent, recovering from a contraction of 0.06 percent in the first quarter. In contrast, private consumption and gross fixed capital formation decelerated to 5.06 percent and 4.67 percent yoy, respectively, from 5.17 percent and 5.78 percent, respectively, in the first three months.

On a quarter-over-quarter basis, the GDP accelerated to 2.61 percent, from 1.42 percent in the first quarter, mainly boosted by higher government spending. 

Indonesia GDP Slows to 5.81% YoY in Q2

Joana Taborda |
8/2/2013 2:58:39 PM