Indonesia GDP Grows 5.01% in Q2, Less Than Expected
The Indonesian economy expanded 5.01 percent year-on-year in the second quarter of 2017, the same pace as in the previous period and below market expectations of 5.10 percent. Growth was driven by private consumption and fixed investment while exports rose at a slower pace and government spending fell. On a quarterly basis, the economy expanded by 4.00 percent in Q2.
On the expenditure side, private consumption advanced 4.95 percent (4.94 percent in Q1) and fixed investment grew 5.35 percent (4.78 percent in Q1). Also, private non-profit consumption went up 8.49 percent (8.05 percent in Q1) while government spending contracted 1.93 percent (2.68 percent in Q1). Meanwhile, exports went up 3.36 percent (8.21 percent in Q1) and imports increased 0.55 percent (5.12 percent in Q1).
On the production side, output grew for: Agriculture (3.33 percent from 7.12 percent in Q1); mining and quarrying (2.24 percent from -0.64 percent); manufacturing (3.54 percent from 4.24 percent); water and waste management (3.67 percent from 4.39 percent); construction (6.96 percent from 5.95 percent); wholesale and retail trade (3.78 percent from 4.96 percent); transport and storage (8.37 percent from 8.03 percent); hotel and restaurant (5.07 percent from 4.68 percent); information and communication (10.88 percent from 9.13 percent); finance and insurance (5.94 percent from 5.99 percent); real estate (3.86 percent from 3.67 percent); business services (8.14 percent from 6.80 percent); education (0.90 percent from 4.09 percent); healthcare (6.40 percent from 7.10 percent); and other services (8.63 percent from 8.01 percent). In contrast, output contracted for: Electricity and gas (-2.53 percent from 1.60 percent in Q1); and government administration (-0.03 percent from 0.22 percent).
The government targets the economy to grow 5.2 percent this year, while the central bank forecasts growth in the middle of the 5.0-5.4 percent range.
8/8/2017 1:39:15 AM