Indonesian growth accelerated slightly in the first quarter on improving exports, official data showed Friday, but the outlook for the recovery in Southeast Asia’s top economy is subdued.
President Joko Widodo came to power in 2014 on a pledge to boost growth to 7 percent but his government has struggled to lift rates in the country, which is rich in resources but has suffered from a slump in commodity prices.
The economy grew 5.01 percent year-on-year in January-March, slightly up from the previous quarter’s 4.94 percent, according to the statistics agency.
Exports surged 20.8 percent on-year and grew 1.33 percent from the previous three months, said statistics agency chief Suhariyanto, who goes by one name.
The increase came on the back of a jump in the prices of some food exports, such as tea and shrimp, according to the statistics agency, while improving conditions in key destinations such as China and the US also helped.
However, consultancy Capital Economics said falling prices of coal and palm oil — key exports for the nation — were weighing on growth.
“Looking ahead, with commodity prices likely to stay relatively depressed and credit growth set to remain weak, we expect growth to remain stuck at around 5 percent over the next couple of years,” Capital Economics’ Gareth Leather said.
Growth in Indonesia has been stuck at around 5 percent for the past three years, below the 5.8 percent average recorded over the past decade, according to the London-based consultancy.
Authorities have been scrambling to boost growth, unleashing a series of economic stimulus measures last year, while the central bank cut the key interest rate six times.
Full-year growth ticked up to 5.02 percent in 2016 but undershot expectations in the final quarter.
Source: Arab News
GMT 14:02 2018 Sunday ,02 December
RDIF says $2 billion will be invested in Russian economy from joint Russian-Saudi fundGMT 12:03 2018 Friday ,30 November
Canada on track to sign new free trade deal with US and MexicoGMT 07:59 2018 Wednesday ,21 November
Merkel policies in focus in final debate on draft German budgetGMT 16:57 2018 Wednesday ,31 October
Putin to discuss relations development prospectsGMT 16:04 2018 Monday ,29 October
Russian, Cuban presidents to discuss strategic partnershipGMT 12:57 2018 Saturday ,27 October
"Undeclared war" forces Russia to boost defense spendingGMT 15:45 2018 Friday ,26 October
Medvedev to represent Russia at upcoming APEC summitGMT 14:12 2018 Thursday ,25 October
Saudi Arabia plans to invest in Russian-Chinese Fund soonMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor