Indonesia's annual economic growth edged up to 5.18 percent in the fourth quarter of 2018 from 5.17 percent in the previous three-month period and slightly above market consensus of 5.11 percent. The expansion was mainly driven by private consumption while both fixed investment and government spending increased at a slower pace. Meantime, net exports contributed negatively to the GDP growth.
On the expenditure side, household consumption rose 5.08 percent in the fourth quarter, after a 5 percent increase in the previous period while fixed-investment went up 6.01 percent, slowing from 6.96 percent in the September quarter. On the other hand, government spending climbed 4.56 percent in the fourth quarter, compared with a 6.27 percent advance in the previous period. Meanwhile, net external demand contributed negatively to the GDP growth as imports rose 7.10 percent (vs 14.02 percent in Q3) and exports increased at a softer 4.33 percent (vs 8.08 percent in Q3).
On the production side, output growth accelerated for: agriculture (3.87 percent vs 3.66 percent in Q3); business services (8.94 percent vs 8.67 percent); financial and insurance services (6.27 percent vs 3.14 percent); real estate (4.24 percent vs 3.82 percent); water and waste management (7.92 percent vs 6.20 percent); accommodation & food services (5.95 percent vs 5.91 percent); and health and social services (7.80 percent vs 7.54 percent). Meantime, GDP increased at a softer pace for: manufacturing (4.25 percent vs 4.35 percent); construction (5.58 percent vs 5.79 percent); electricity and gas (5.46 percent vs 5.58 percent); transportation (5.34 percent vs 5.65 percent); and other services (9.08 percent vs 9.19 percent); information and communication (7.17 percent vs 8.14 percent); public administration, defense and social security (7.13 percent vs 7.93 percent); education (4.97 percent vs 6.60 percent); mining and quarrying (2.25 percent vs 2.67 percent); and wholesale and retail trade (4.39 percent vs 5.28 percent).
On a quarterly basis, the economy contracted 1.69 percent in the three months to December, following a 3.09 percent rise in Q3 and compared with market consensus of a 1.75 percent contraction. It marked the first quarterly contraction since the first quarter of the year.
For 2018 as a whole, the economy grew 5.17 percent, compared to a 5.07 percent expansion in 2017, and marking the fastest growth rate since 2013.
2/6/2019 10:43:43 AM