JAKARTA: Indonesia’s gross domestic product (GDP) in the third quarter increased 4.95% from a year earlier, its slowest pace in a year, data from the statistics bureau have showed.
This came on household consumption indicating softer growth.
The third quarter result came slightly below the 5% annual growth expected by analysts polled by Reuters and compared with an increase of 5.05% in the second quarter.
On a quarterly, non-seasonally adjusted basis, GDP grew 1.50%, compared with a forecast of 1.59%.
Household consumption, which makes up around half of Indonesia’s GDP, grew 4.91% annually in the third quarter, compared to 4.93% growth in the previous quarter, amid slower spending for goods such as clothing and housing, Statistics Indonesia acting head Amalia Widyasanti told reporters.
Investment grew 5.15% year-on-year, its fastest pace in a year, supported by investment into the new capital city and other infrastructure projects, she added.
Government spending and exports also expanded more.
“Third-quarter growth numbers met our expectations as investment growth and pick-up in exports compensated for soft household consumption,” said DBS Bank economist Radhika Rao. — Reuters
