Indonesia’s GDP grew at a slower pace by 4.67% year-on-year in second quarter

JAKARTA (rambuenergy.com) – Indonesia’s economy expanded by 4.67 percent year-on-year (yoy) in the three months to June, grew at a slower pace compared to the same period last year of 5.03 percent, the Central Bureau of Statistic (BPS) announced on Wednesday (Aug 5).

BPS Chairman Suryamin said the falling commodity prices weighed on mining sector growth.

The second quarter growth was even slower compared to the first quarter economic growth of 4.72 percent. On quarter-to-quarter basis, the economy grew by 3.78 percent in second quarter from first quarter.

From production perspective, all sectors showed a growth led by education which recorded a growth of 12.16 percent. From expenditure point of view, household expenditure recorded the highest growth at 4.97 percent.

The Indonesian government expects GDP to grow by 5.2 percent this year. Given the slow pace growth, a number of institutions have revised down their full year growth forecast.

The slow-pace growth indicated that the Joko Widodo government’s move to drive economic growth higher this year by developing infrastructure projects are yet to have an impact on the economy as major infrastructure projects were delayed. (*)

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