Indonesia misses Q1 economic growth forecasts as exports fall
Indonesia’s economy grew slower than predicted in the first quarter, official information showed Monday (May 6), as exports declined for the first time since 2016 due to lower supply for core commodities
In January-March, the largest economy in Southeast Asia increased 5.07 percent, just over flat from a year ago, and market predictions of 5.18 percent were incorrect
An increase in state and family expenditure boosted development, but imports and exports dropped a year earlier, while gross national product decreased from last quarter 2018, the statistics office said.
Commodity-driven economies confronted increasing trade deficits and rocky worldwide demand for export drivers like palm oil and coal
“Exports are probable to stay fragile,” Capital Economics said in a study after publishing the numbers.
“We expect worldwide development to soften further in the coming quarters and stay subdued for Indonesia’s primary commodity exports, coal, and palm oil prices,” he added.
Data comes several decades after Indonesia conducted surveys that, according to informal outcomes, saw President Joko Widodo elected to a second term. Official numbers are due this month.
Widodo relied strongly on the campaign’s multi-billion-dollar infrastructure thrust, including Jakarta’s first mass-rapid-transit scheme.
His administration, however, saw annual development hovering around five percent a year, well short of previous pledges to reach seven percent despite massive infrastructure construction boom and stimulus packages.