Indonesia's annual economic growth eased to 5.17 percent in the third quarter of 2018 from 5.27 percent in the previous three-month period and slightly above market consensus of 5.15 percent. The expansion was mainly driven by private consumption and fixed investment while net exports contributed negatively to the GDP growth.
On the expenditure side, household consumption rose 5.01 percent in the third quarter, after a 5.14 percent increase in the previous period; and fixed-investment went up 6.96 percent, accelerating from 5.87 percent in the June quarter. In addition, government spending climbed 6.28 percent in the third quarter, compared with a 5.26 percent advance in the previous period. Meanwhile, net external demand contributed negatively to the GDP growth as imports jumped 14.06 percent (vs 15.17 percent in Q2) and exports increased at a softer 7.52 percent (vs 7.70 percent in Q2).
On the production side, output growth eased for: agriculture (3.62 percent vs 4.76 percent in Q2); electricity and gas (5.58 percent vs 7.56 percent); transportation (5.64 percent vs 8.59 percent); business services (8.67 percent vs 8.89 percent); and other services (9.19 percent vs 9.22 percent). Meantime, GDP increased at a faster pace for: manufacturing (4.33 percent vs 3.97 percent); construction (5.79 percent vs 5.73 percent); information and communication (8.98 percent vs 6.06 percent); financial and insurance services (3.44 percent vs 3.02 percent); real estate (3.85 percent vs 3.11 percent); public administration, defense and social security (7.89 percent vs 7.20 percent); education (6.62 percent vs 4.94 percent); mining and quarrying (2.68 percent vs 2.21 percent); water and waste management (6.22 percent vs 3.94 percent); wholesale and retail trade (5.26 percent vs 5.24 percent); accommodation & food services (5.90 percent vs 5.75 percent); and health and social services (7.55 percent vs 7.07 percent).
On a quarterly basis, the economy grew 3.09 percent in the three months to September, slightly above market expectations of 3.07 percent and following a 4.21 percent expansion in the previous period.
For 2018, the government still expects the economy to grow by 5.4 percent though officials have said the latest outlook is 5.14 percent. The central bank's 2018 forecast is between 5.1-5.2 percent.
11/5/2018 11:18:54 AM