Indonesia 3Q GDP +5.06% On Year, +3.18% On Quarter
JAKARTA, Indonesia--Indonesia's economy grew at a slightly faster pace in the third quarter, helped by higher global commodity prices, stronger investment and increased government spending
Meanwhile, growth in household spending slowed, holding back the overall economic expansion.
Southeast Asia's largest economy expanded 5.06% year-over-year during the July-October period, accelerating slightly from the 5.01% growth of the first and second quarters, the official statistics agency. Sequentially, the economy grew 3.18% after a 3.67% increase in the April-June quarter.
Economists polled by The Wall Street Journal forecast a 5.14% year-over-year expansion, and growth of 3.26% on-quarter.
"We expect economic growth will continued to improve in the fourth quarter," the agency's chairman, Suhariyanto, said.
Household spending, which accounts for more than 50% of gross domestic product, grew 4.93% year-over-year in the third quarter, compared with a 4.95% gain in the second quarter. Government spending rose 3.46% from a year earlier after contracting 1.93% in the second quarter, as more infrastructure projects started.
Investment expanded 7.11% versus 5.35% in the previous quarter, while exports rose 17.27% compared with a 3.36% increase in the April-June period.
Bank Indonesia said last month that economic growth for the entire year is likely to be stronger than its previous projection of 5.2% after it cut interest rates by half a percentage point in the third quarter.
The government's investment board said last week the combined investment realization by foreign and domestic investors in rupiah terms rose by 13% to 513.2 trillion rupiah ($380.18 billion) during the first nine months of the year from a year earlier.
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(END) Dow Jones Newswires
November 06, 2017 00:11 ET (05:11 GMT)