Indonesia GDP growth strongest in 2-1/2-years in Q2Staff Writer | August 10, 2016
The Indonesian economy expanded by 5.18% year-on-year in the second quarter of 2016, compared to a downwardly revised 4.91% growth in the previous period.
Indonesian economy The strongest growth since the December quarter 2013
In the June quarter, private consumption advanced 5.04% year-on-year, following a 4.94% growth in the preceding quarter.
Government spending rose 6.28%, faster than a 2.93% expansion in the March quarter. Gross fixed capital formation also grew by 5.06%, slowing from a 5.57% rise in the previous three months.
Private non-profit expenditure expanded by 6.72%, as compared to a 6.38% growth in the preceding quarter.
In contrast, exports fell by 2.73%, slower than a 3.88% decline in the first quarter. Imports shrank 3.01%, after registering a 4.24% contraction in the three months to March.
On the production side, mining and quarrying sector contracted by 0.72% year-on-year, following a 0.66% drop in the first quarter.
In contrast, finance and insurance sector recorded the highest annual growth rate of 13.51%, followed by information and communication (+8.47%), other services (+7.88%), business services (+7.57%), transport & storage (+6.81%), and healthcare (+6.59%).
The growth as was also seen in electricity and gas (+6.24%), construction (+6.21%), education (+5.58%), hotel and restaurant (+4.92%), manufacturing (+4.74%), social services (+4.74%), real estate (+4.46%), wholesale and retail trade (+4.07%), water and waste management (+3.31%) and agriculture (+3.23%).
On a quarterly basis, the economy grew 4.02%, following an upwardly revised 0.36% contraction in the previous three months and beating estimates of a 3.79% expansion. It was the first growth since the September quarter 2015. Private consumption grew 1.28%, following a 0.16% rise in the March quarter.
Government spending expanded by 36.16%, reversing from a 49.44% expansion in the preceding quarter. Private non-profit spending advanced 2.53%, after falling 2.89% in the previous three months.
Investment rose 2.55%, as compared to a 5.75% contraction in the first quarter. Exports went up by 2.29% from a 3.09% drop. Imports rose 3.05%, after declining 7.05% in the March quarter.
From January to June 2016, the economy grew by 5.04%, faster than a 4.70% expansion in the same period a year earlier. ■