Indonesia Economy Expands 3.09% in Q3
Indonesia's gross domestic product grew 3.09 percent quarter-on-quarter in the three months to September 2018, slightly above market expectations of 3.07 percent and after a 4.21 percent expansion in the previous period. There was a slowdown in government spending while private consumption and fixed investment increased firmly and net external demand contributed positively to the GDP growth.
Still, the latest reading was the second straight quarter of expansion amid multiple adversities in recent months, including the earthquake and tsunami in Palu as well as floods in some regions.
On the expenditure side, government spending increased 6.36 percent in the third quarter, way softer than a 32.51 percent jump in the previous period. Meanwhile, private consumption growth picked up to 3.31 percent from 1.54 percent in the previous quarter and fixed investment expansion accelerated to 6.32 percent from 0.95 percent. Exports surged 8.68 percent (vs -0.96 percent in Q2) and imports increased at a slower 7.86 percent (vs 0.49 percent in Q2).
On the production side, output rose at a softer pace for: agriculture, forestry and fishing (3.18 percent vs 9.92 percent in Q2); mining and quarrying (0.36 percent vs 2.48 percent); wholesale and retail trade (3.05 percent vs 3.12 percent); transportation and storage (2.41 percent vs 3.15 percent); accommodation and food service (1.57 percent vs 1.96 percent); business activities (2.41 percent vs 3.37 percent); education services (2.92 percent vs 3.24 percent); and other services (2.68 percent vs 3.29 percent). Meanwhile, output growth accelerated for: manufacturing (2.57 percent vs 2.06 percent); electricity and gas (3.38 percent vs 3.09 percent); water supply, sewerage, waste management and remediation activities (3.79 percent vs 1.61 percent); construction (4.81 percent vs 0.94 percent); information and communication (3.67 percent vs 2.01 percent); financial services and insurance (3.42 percent vs 0.68 percent); real estate (1.05 percent vs 0.92 percent); public administration (2.98 percent vs 1.53 percent); and health and social services (2.28 percent vs 1.49 percent).
Year-on-year, the economy expanded 5.17 percent in the September quarter, easing from a 5.27 percent growth in the previous period and slightly above consensus of 5.15 percent.
11/5/2018 11:33:04 AM