Indonesia: BI estimates 2017 GDP growth at 5.1%, helped by exports, investment

• Dec 23, 2017

Indonesia is expected to record year-on-year (yoy) economic growth of 5.1 percent this year amid increasing exports and investment, Bank Indonesia (BI) has announced.

BI Governor Agus Martowardojo said economic conditions in 2017 were better than in 2016, although the recovery was slow. Gross domestic product (GDP) growth in the first, second and third quarters ranged between 5.01 percent and 5.06 percent yoy, slightly better and more stable than growth of 4.92 percent to 5.18 percent yoy in the corresponding periods of last year.

“Looking at the growth in the previous quarters, we may end this year with nearly 5.1 percent growth,” he said during a visit to the Mount Agung observation post in Rendang district in Karangasem regency, Bali, on Friday.

Pointing to investment growth of 7.11 percent yoy and export growth of 17.27 percent yoy in the third quarter, the governor noted that those two segments would support economic growth in the final quarter of the year. Household spending, however, remains the crucial factor.

“Consumption is still a dominant factor for our economy. It contributes 55.68 percent to the total GDP,” he said.

Growth in this segment has been stable throughout 2017. In the third quarter, household spending grew at a rate of 4.93 percent yoy, which compares to 4.95 percent yoy in the second quarter and 4.93 percent yoy in the first quarter. (dmr)

Source: http://www.thejakartapost.com/news/2017/12/23/bi-estimates-2017-gdp-growth-at-5-1-helped-by-exports-investment.html