Indonesia Posts the Slowest GDP Growth in 5 Years
Indonesian economy expanded 5.01 percent year-on-year in the third quarter of 2014, the slowest growth rate since 2009 as an increase in government spending was unable to offset slowing investment and a decline in exports.
On the expenditure side, exports fell 0.7 percent, following a 1.04 percent decline in the second quarter, while imports plunged 3.63 percent from a 5.02 percent fall in the April to June period. Government spending expanded 4.37 percent after registering a 0.71 percent decline in the previous three months. Private consumption grew 5.44 percent, slowing from a 5.59 percent growth in the preceding period and gross fixed capital formation grew at a slower 4.02 percent from a 4.53 percent expansion in the second quarter.
On the production side, the transport and communication sector recorded the highest annual growth rate at 9.01 percent compared with a 9.53 percent expansion in the second quarter. The services sector grew 6.52 person from 5.68 in the previous period while financial and business services expanded 5.96 percent, slowing from a 6.18 percent increase in the June quarter. Construction advanced 6.28 percent, slowing from a 6.59 percent expansion in the second quarter. Mining and quarrying grew 0.31 percent from a 0.15 percent decline in the previous period. Utilities, including electricity, gas and water supply expanded 6.18 percent from a 5.77 percent increase in April to June quarter. Growth in the manufacturing sector slowed to 4.61 percent from 5.04 percent expansion in the preceding period.
On a quarter-on-quarter basis, the economy expanded 2.96 percent from a revised 2.49 percent in the previous quarter. Private consumption rose 2.78 percent from a 1.50 percent growth in the second quarter. Goverment consumption accelerated 11.12 percent after registering a 25.39 percent growth in the preceding period. Investments activities grew 1.66 percent from a revised 4.61 percent expansion in April to June quarter. Exports in the third quarter advanced 0.02 percent, slowing significantly from a 2.14 percent growth in the previous period, while imports fell 2.87 percent from a 5.32 percent growth in the earlier period.
11/5/2014 11:27:44 AM