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Economy grows 5.06% in Q3

Economic growth stood at 5.06 percent year-on-year (yoy) in the third quarter of this year, slightly more than the 5.01 percent recorded in the previous quarter, the Central Statistics Agency (BPS) announced in Jakarta on Monday.

That brought year-to-date economic growth to 5.03 percent.

Investment, which contributed almost 32 percent to gross domestic product (GDP), expanded 7.11 yoy percent, while government spending grew 3.46 percent yoy versus -1.93 percent in the second quarter.

Export and import growth rose 17.27 percent and 15.09 percent, respectively, in the third quarter.

Read also: More effort needed to achieve 7% growth: Economist

“Economic growth in the third quarter was supported by expansion in all [GDP] components,” BPS head Suhariyanto told a press conference on Monday.

However, private consumption, which accounts for more than half of GDP, slowed to 4.93 percent yoy from the 4.94 percent booked in the first six months. The component usually expands about 5 percent.

Household consumption has caused debate among economists and government officials.

The Consumers Tendency Index, which reflects consumer confidence, dropped to 109.42 in the third quarter from 115.92 in the previous three months. Consumers also view the economy in the fourth quarter more pessimistically as the index is projected to decrease to 105.49. (bbn)