Indonesia's annual economic growth eased slightly to 5.05 percent in the second quarter of 2019 from 5.07 percent in the previous three-month period and matching market consensus. That was the weakest pace of expansion since the second quarter of 2017, as investment growth remained the slowest since early 2017.
On the expenditure side, fixed-investment went up 5.01 percent in the second quarter, slowing from 5.03 percent in the March quarter. Meanwhile, household consumption rose 5.17 percent, after a 5.02 percent increase in the previous period; and government spending climbed 8.23 percent, compared with a 5.21 percent advance in the previous period.
Net external demand contributed positively to the GDP growth as exports fell 1.81 percent (vs -1.86 percent in Q1) and imports tumbled at a faster 6.73 percent (vs -7.36 percent in Q1).
On the production side, output growth slowed for: manufacturing (3.54 percent vs 3.86 percent); electricity and gas (2.20 percent vs 4.12 percent); accommodation & food services (5.52 percent vs 5.87 percent); construction (5.69 percent vs 5.91 percent); wholesale and retail trade (4.63 percent vs 5.27 percent); business services (9.94 percent vs 10.36 percent); financial and insurance services (4.55 percent vs 7.32 percent); and water and waste management (8.35 percent vs 8.95 percent). In addition, mining and quarrying output shrank 0.71 percent, compared to 2.32 percent expansion in the previous period.
Meantime, GDP expanded faster for: agriculture (5.33 percent vs 1.82 percent); transportation & storage (5.78 percent vs 5.25 percent); public administration, defense and social security (8.82 percent vs 6.40 percent); real estate (5.74 percent vs 5.46 percent); information and communication (9.60 percent vs 9.06 percent); education (6.29 percent vs 5.60 percent); health and social services (9.09 percent vs 8.59 percent); and other services (10.73 percent vs 9.99 percent);
Considering the first half of the year, the economy expanded 5.06 percent from a year earlier.
For 2019, the government is targeting economic growth at 5.2-5.3 percent, while the central bank has forecast 5.2 percent.
Statistics Indonesia | Chusnul Ch Manan | chusnul@tradingeconomics.com
8/5/2019 3:17:50 PM