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Indonesia Q1 GDP annual growth weakens to 1-year low

Christian Fernsby |
Indonesia's annual economic growth eased to 5.07 percent in the first quarter of 2019 from 5.18 percent in the previous three-month period and below market consensus of 5.18 percent.

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This was the weakest growth rate in one year, as both private consumption and fixed investment rose at softer pace.

On the expenditure side, household consumption rose 5 percent in the first quarter, after a 5.08 percent increase in the previous period while fixed-investment went up 5.03 percent, slowing from 6.01 percent in the December quarter.

On the other hand, net external demand contributed positively to the GDP growth as exports fell 2.08 percent (vs 4.33 percent in Q4) and imports plunged at a faster 7.75 percent (vs 7.10 percent in Q4).

Meanwhile, government spending climbed 5.21 percent in the first quarter, compared with a 4.56 percent advance in the previous period.

On the production side, output growth slowed for: agriculture (1.81 percent vs 3.87 percent in Q4); manufacturing (3.86 percent vs 4.25 percent); electricity and gas (4.12 percent vs 5.46 percent); transportation & storage (5.25 percent vs 5.34 percent); accommodation & food services (5.87 percent vs 5.95 percent); and public administration, defense and social security (6.45 percent vs 7.13 percent).

Meantime, GDP expanded faster for: construction (5.91 percent vs 5.58 percent); mining and quarrying (2.32 percent vs 2.25 percent); wholesale and retail trade (5.26 percent vs 4.39 percent); business services (10.36 percent vs 8.94 percent); financial and insurance services (7.33 percent vs 6.27 percent); real estate (5.49 percent vs 4.24 percent); water and waste management (8.95 percent vs 7.92 percent); information and communication (9.03 percent vs 7.17 percent); education (5.62 percent vs 4.97 percent); health and social services (8.61 percent vs 7.80 percent); and other services (9.99 percent vs 9.08 percent).

For 2019, the government is targeting economic growth at 5.3 percent, while the central bank has forecast a range of 5.0-5.4 percent.

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