Indonesia’s GDP growth expands 5.06% in disappointment

• Nov 06, 2017

JAKARTA: Indonesia’s economy expanded at a slower pace in the third quarter than economists expected, a disappointing outcome for the government as it struggles to boost growth in Southeast Asia’s largest economy.

Key Points

• Gross domestic product rose 5.06% from a year earlier, according to data released by the statistics bureau in Jakarta on Monday
• Median estimate of 16 economists in survey was for growth of 5.2%
• Economy grew 3.18% from previous quarter; economists estimated a 3.2% gain

Big Picture

Indonesia’s economy has expanded at an average of about 5% over the past five years, with government officials, including Finance Minister Sri Mulyani Indrawati, striking a more upbeat tone on the growth outlook.

A rebound in commodity prices that has helped deliver double-digit growth in exports for most of the year, combined with a surge in investment, suggests the economy is picking up steam. On the downside, consumer spending and credit growth has remained muted even after eight rate cuts since the beginning of last year.

Other Details

• Exports rose 24% to $43.4 billion in third quarter from a year earlier
• Investment climbed 14%

Source: https://www.bangkokpost.com/business/world/1355552/indonesias-gdp-growth-expands-5-06-in-disappointment