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Indonesia`s Economy Predicted to Grow 5.3 percent in Q2

Jakarta (ANTARA News) – Bank Indonesia (BI) predicted the countrys economy would grow 5.3 percent in the second quarter of this year, slightly higher than the growth of 5.21 percent in the first quarter.

Deputy Governor of the central bank Perry Warjiyo, said the economic growth in the second quarter of this year is driven by household consumption and investment.

“The household consumption and investment growth is still consistent with the economic growth in 2014,” Perry said here on Friday.

He attributed the higher increase in the growth in the second quarter of this year to seasonal factor pointing to Islamic fasting month of Idul Fitri.

Household consumption would increase so will investment and production, he said.

The economic growth slowed in the first quarter of this year compared to the previous three month period when the economy expanded 5.72 percent on-year.

The GDP growth in the first quarter was lower than predicted by the central bank earlier.

The slowdown was attributable to external factor with export contracted especially exports of mining commodities such as coal and mineral concentrates on weak demand in the world market and the government policy of banning exports of unprocessed minerals.

The economic growth in the first quarter was driven by high fairly growth of the household consumption and investment.

Household consumption grew quite strongly on an increase in per capita income, retail sales and legislative election.

Meanwhile investment grew slightly driven by non construction especially investment in machines amid slowdown in investment in construction sector.

Source : www.antaranews.com, Friday, June 6