Indonesia’s economic growth slows in Q3

According to media reports, Indonesia’s economy expanded in line with the expectations in the third quarter. The country’s gross domestic product (GDP) rose by 5.02% year over year in the July-September period while it is lower than the 5.19% growth rate recorded in the previous quarter, according to data released by Indonesia’s statistics bureau. Initial estimates called for a growth rate of 5.08% in a survey by Bloomberg.

President Joko Widodo had targeted a 7% growth rate for Southeast Asia’s biggest economy despite the obstacles set by lower commodity prices and weaker global demand.

n the third quarter, Indonesia’s household consumption rose 5% on a yearly basis while government spending also increased 3%. Investment increased by 4.1% while exports and imports declined by 6% and 3.9%, respectively.

This year, Bank Indonesia has cut interest rates six times in order to support spending to boost the economy. President Widodo, encouraging the country to reach higher growth rates, stated last week that they aim for a growth rate of more than 6% in 2018 along with a 10% increase in investment.