Indonesia: Indonesian economy slows in first quarter
May 7, 2012
In the first quarter, GDP grew 6.3% over the same quarter last year, which was below the 6.5% increase observed in the fourth quarter of 2011 but came in line with market expectations. The result mainly reflected a slowdown in fixed investment growth. Private consumption maintained its resilience and added 4.9% year-on-year, which mirrored the figure observed in the fourth quarter of last year. Government consumption accelerated from a 2.8% rise recorded in the fourth quarter to a 5.9% expansion in the first. Fixed investment, however, slowed from an 11.5% expansion in the fourth to a 9.9% rise in the first. On the external side, exports grew 7.8% in the first quarter, which was virtually unchanged from the 7.9% pace recorded in the fourth quarter, while imports added 8.2% (Q4: +10.1% yoy). As imports lost steam, the external sector's net contribution to overall growth rose from plus 0.1 percentage points in the fourth quarter to plus 0.7 percentage points in the first. The Central Bank expects the economy to grow between 6.3% and 6.7% this year and between 6.4% and 6.8% in 2013.