Indonesian economy expanded 5.12 percent year-on-year in the second quarter of 2014, the slowest rate since 2009 as exports and government spending declined.
On the production side, transport and communication sector recorded the highest annual growth rate at 9.53 percent compared with a 10.23 percent rise in the first quarter. Mining contracted 0.15 percent, from a 0.38 percent declinde in the previous quarter. Construction advanced 6.59 percent, flat from growth 6.54 percent in January to March period. Utilities sector, including electricity, gas and water supply grew 5.77 percent from 6.52 percent in the first quarter. Financial and business services were relatively stable with growth at 6.18 percent from 6.16 percent in the preceding quarter. The expansion of manufacturing sector slowed to 5.04 percent from 5.16 percent.
On the expenditure side, exports shrank by 1.04 percent from a 0.44 percent fall in the first quarter. Imports plunged 5.02 percent from a 0.73 percent fall in January to March of 2014. Government spending contracted 0.71 percent from 3.58 percent growth in the previous three months. Private consumption continued strengthening and recorded 5.59 percent growth compared with 5.61 percent in the preceding period. Gross fixed capital formation were down to 4.53 percent from 5.14 percent in a period before.
On a quarter-on-quarter basis, the economy expanded 2.47 percent from 0.95 percent in the previous quarter thanks to the holy month and Eid holidays spending as well as the election. Private consumption rose 1.50 percent, doubling from the previous quarter. Goverment consumption also got a boost from the disbursement of the state budget, increasing 25.39 percent from a 44.17 contraction in January to March. Investments activity rose substantially from a 5.60 percent fall in the first quarter to 4.61 percent in the next quarter. Exports also improved to 2.14 percent from a 11.13 percent contraction in January to March while imports gained 5.32 percent after plunging 12.99 percent.
8/5/2014 9:27:19 AM