Indonesia GDP Growth Slows to 5-Year Low

Indonesian economy advanced 5.21 percent year-on-year in Q1 of 2014, the slowest pace since 2009 and lower than the 5.72 percent growth rate in the previous quarter. A government ban imposed on exports of unprocessed minerals in January hurt exports and the mining sector.

On the production side, mining contracted 0.38 percent year-on-year, while the transport and communication sector recorded the highest annual growth rate (10.23 percent). Construction advanced 6.54 percent; electricity, gas and water supply 6.52 percent; financial and business services grew 6.16 percent and manufacturing expanded 5.16 percent. 

On the expenditure side, exports shrank 0.78 percent and imports fell 0.66 percent. While government spending slowed to an annual 3.58 percent growth rate, private consumption and gross fixed capital formation accelerated slightly to 5.61 percent and 5.13 percent yoy, respectively.

On a quarter-on-quarter basis, the economy expanded 0.95 percent. Mining and quarrying in the first quarter contracted 3.57 percent; construction fell 5.21 percent and manufacturing shrank 2.28 percent. In contrast, agriculture production surged 22.7 percent. 

Indonesia GDP Growth Slows to 5-Year Low

Joana Taborda |
5/5/2014 10:23:56 AM