JAKARTA: Indonesia’s gross domestic product in the third quarter increased 4.95 per cent from a year earlier, its slowest pace in a year, data from the statistics bureau showed on Tuesday ( Nov 5 ), as household consumption showed softer growth.
Analysts polled by Reuters found that the third-quarter results were slightly below the 5 % annual growth rate that the second-quarter’s result predicted, and this was slightly higher than the 5.05 % increase.
On a weekly, non-seasonally adjusted base, GDP grew 1.50 per share, compared with a projection of 1.59 per share.
Household use, which makes up about quarter of Indonesia’s GDP, grew 4.91 per cent every in the second quarter, off the previous month’s expansion of 4.93 per share, amid slower paying for goods such as clothing and housing, Amalia Widyasanti, the acting head of Statistics Indonesia, told reporters.
Purchase grew 5.15 per cent year-on-year, its fastest rate in a year, supported by investment in the new investment area and other infrastructure projects, she added. Federal spending and imports increased even more.
According to Radhika Rao, an economist with DBS Bank,” Third-quarter growth figures met our objectives as investment growth and export growth matched our expectations.”
Full-year GDP growth is expected at around 5 per cent, said Airlangga Hartarto, the general economic minister.
” We may continue to support family use and even expense”, Airlangga told reporters. We hoped to keep the economy growing until the year-end.
Existing government opportunities, such as a tax break on specific home selling, are expected to support use, he said, adding that the state was also formulating a plan to assist labour-intensive industries avoid layoffs.
As Middle Eastern tensions increased, Bank Indonesia cut interest rates in September to support the economy, and they remained stable until October.
The third-quarter GDP studying backs DBS Bank’s estimates for a more level cut by the central banks this quarter, assuming pound security, Rao added.
The ringgit closed 0.13 per share stronger on Tuesday, rebounding off its weakest levels since August, hit earlier in the day.