JAKARTA: Bank Indonesia (BI) has predicted that economic growth in the second quarter this year will remain the same as the previous quarter’s 4.7 percent year-on-year (yoy), the lowest since 2009.
“Maybe around first quarter level,” said BI governor Agus Martowardojo as quoted by Kontan.co.id. The projection is lower than BI’s earlier estimate of 4.9 percent for the second quarter.
Government spending, investment and domestic consumption would remain the backbone of growth, according to Agus. “In the second semester we must book high growth. BI is still of the opinion that Indonesia’s economic growth can be at around 5 percent to 5.4 percent [at the end of the year],” said Agus.
Current account deficit is predicted at 2.5 percent of the nation’s gross domestic product (GDP) in the second quarter, far lower than 3.92 percent in the second quarter of 2014.
Imports have remained sluggish so far this year, down 17.9 percent to US$60.97 billion during January-May from the same period last year, as downward movement was booked across components, from raw materials to capital goods as well as consumer goods.
