Economic growth in second quarter of 2019 to reach 5.05-5.15 percent

Economic growth in second quarter of 2019 to reach 5.05-5.15 percent

Head of the Fiscal Policy Agency of the Finance Ministry, Suahasil Nazara. (ANTARA PHOTO/Sigid Kurniawan/aww/17.)

"We predict it will reach 5.05 to 5.15 percent, better than (the growth) in the first quarter of 2019," Nazara said.
Jakarta (ANTARA) - Indonesia's economic growth in the second quarter of 2019 is predicted to range between 5.05 and 5.15 percent, head of the Fiscal Policy Agency of the Finance Ministry, Suahasil Nazara, said here on Friday.

"We predict it will reach 5.05 to 5.15 percent, better than (the growth) in the first quarter of 2019," Nazara said.

The country's economy, he said, would be supported by household consumption with the increase in public expenditure during the Eid al-Fitr festival.

In addition, the Household Non-Profit Institution (LNPRT) consumption expenditure has contributed to the economy with increased activities during the general elections.

He expressed hope that the sluggish growth of investment in the first quarter of the year would recover after business operators previously suspended activities while waiting for the result of the elections.

"We saw that investments had slightly slowed down due to the elections. Investors took a wait and see attitude and waited for the results. But we hope that from June, investment will make its contribution again," he elaborated.

However, the economic growth projection in the second quarter of 2019 was still lower than the growth in the same period of 2018 at 5.27 percent, Nazara said.

Previously, the Central Bureau of Statistic (BPS) recorded economic growth in the first quarter of 2019 at 5.07 percent with the support of household consumption, government and investment expenditure.

During the period, household consumption grew 5.01 percent, higher than the growth during the same periods in 2017 and 2018 that both recorded 4.94 percent.

The growth was also supported by the growth in government consumption at 5.21 percent due to the increase in expenditure for goods and services, as well as expenditure for civil servants.

Gross Fixed Capital Formation (PMTB) also contributed to the economic growth in the first quarter of 2019, although it only grew 5.03 percent, compared to 4.77 percent and 7.94 percent of PMTB growth during the same periods in 2017 and 2018, respectively.

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