Thursday, 14 November 2019

5.05 to 5.15 Percent Economic Growth Predicted in Q2 of 2019

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Mahinda Arkyasa

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  • Workers construct a building in the Sudirman area in Jakarta, Wednesday, January 9, 2019. TEMPO/Tony Hartawan

    Workers construct a building in the Sudirman area in Jakarta, Wednesday, January 9, 2019. TEMPO/Tony Hartawan

    TEMPO.CO, Jakarta - Chief of Fiscal Policy Agency of the Finance Ministry Suahasil Nazara, predicted that the economic growth in the second quarter of 2019 will be at 5.05 to 5.15 percent.

    "We predict 5.05 to 5.15 percent, or better than the first quarter of 2019," he said in a press conference in Jakarta on Friday, June 21, 2019.

    Suahasil said that the economic performance will be supported by household consumption, which receives growth from the increase of public spending during the 2019 Eid Al-Fitr period.

    In addition, non-profit institution serving households consumption also provided contribution to the economy following the increasing activities during the recent presidential election.

    Suahasil expected that the investment sector, which experienced a slow down on the first quarter of 2019 can begin to present positive impacts in the future after businesses' 'wait and see' stance in anticipation of the election result.

    "We noted investments to be slowing down a little, because of the election. So, investors decided to 'wait and see' until the election had finished. But we hoped, starting in June, there will be contributions from investments," he stated.

    Nevertheless, Suahasil projected that the economic performance in the second quarter of 2019 will not be as high compared to the same period in 2018, which was recorded to grow at a rate of 5.27 percent.

    Previously, the National Statistics Agency recorded that the economy in the first quarter of 2019 had grown by 5.07 percent thanks to household consumption, government consumption, and investments.

    In the current period, household consumption is recorded to grow at a level of 5.01 percent, which is better compared to 4.94 percent recorded in the first quarter of 2017 and 2018.

    The 5.07 percent growth in the first quarter of 2019 was also supported by government consumption, which grow 5.21 percent due to improvement on goods and services procurement and officials' spending.

    The Gross Fixed Capital Formation had also provided contribution to the economy in the first quarter of 2019, despite only recording 5.03 percent growth.

    This achievement was not much different compared to the 4.77 percent and 7.94 percent recorded in the first quarter of 2017 and 2018, respectively.

    ANTARA