Indonesia Q3 GDP Annual Growth Rate Below Expectations
The Indonesian economy advanced 5.06 percent year-on-year in the third quarter of 2017, following a 5.01 percent growth in the previous two periods but missing market expectations of 5.13 percent. The expansion was driven by a rebound in government spending while fixed investment and private consumption continued to increase firmly and net trade contributed positively to growth.
On the expenditure side, government spending went up 3.46 percent, rebounding from a 1.93 percent decline in the preceding three months. Fixed investment grew 7.11 percent, faster than a 5.35 percent in Q2 and private consumption rose 4.93 percent, compared with 4.95 percent in Q2. In addition, exports went up 17.27 percent (3.36 percent in Q2) while imports increased at a softer 15.09 percent (0.55 percent in Q2).
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On the production side, output expanded more than in the preceding quarter for: Manufacturing (4.84 percent from 3.54 percent in Q2); water and waste management (4.83 percent from 3.67 percent); construction (7.13 percent from 6.96 percent); wholesale and retail trade (5.50 percent from 3.78 percent); finance and insurance (6.44 percent from 5.94 percent); business services (9.24 percent from 8.14 percent); education (3.70 percent from 0.90 percent); healthcare (7.44 percent from 6.40 percent) and other services (9.45 percent from 8.63 percent). Also, output rebounded for: electricity and gas (4.88 percent from -2.53 percent) and government administration (0.43 percent from -0.03 percent). Meantime, output grew at a slower pace for: Agriculture (2.92 percent from 3.33 percent in Q2); mining and quarrying (1.76 percent from 2.24 percent); transport and storage (8.27 percent from 8.37 percent); hotel and restaurant (4.96 percent from 5.07 percent); information and communication (9.35 percent from 10.88 percent) and real estate (3.64 percent from 3.86 percent).
The government is targeting economic growth of 5.2 percent this year, while the central bank has forecast a range of 5.0-5.4 percent.