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RI economic growth likely slowed in Q2: BI
Indonesiaâs economy will continue to weaken in the second quarter of 2014, Bank Indonesia (BI) said in a statement last week
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ndonesia's economy will continue to weaken in the second quarter of 2014, Bank Indonesia (BI) said in a statement last week. Household consumption is predicted to slow, though its growth is still quite strong.
'This can be indicated from, among other things, the decrease in the retail sales index and of car sales,' said BI executive director for communication Tirta Segara in a press conference at the bank's headquarters last week.
The central bank also predicted that government spending would grow at a slower pace following the government's decision to move the payment of the 13th monthly salaries of civil servants to the third quarter of this year and to make spending on ministries and government institutions other than ministries more efficient.
'Meanwhile, the growth of investments, especially investments in buildings, is also expected to slow as an impact of the government's stabilization policy. However, investments in non-building projects are predicted to increase, supported by, among others things, manufactured exports' work performance,' said Tirta as quoted by kompas.com.
Overall, BI reported that the work performance of external sectors remained weak, hampered by weak coal and mineral exports. Although overall exports weakened, non-natural resource manufacture exports showed an increasing trend, especially transportation equipment.
'This is especially supported by economic recovery in developed countries and the fact that Indonesia has started to be used as a production base for cars for prime markets in ASEAN, Japan and other Asian countries,' said Tirta. (ebf)
