TEMPO.CO, Jakarta - Bank Indonesia (BI) has predicted that the nations economy will grow this year by 4.7 to 4.8 percent, which is the lower limit of its earlier forecast.
"We predict 2015 economic growth will reach 4.7-4.8 percent, or the lower limit of the earlier projection of 4.7-5.1 percent," BI Governor Agus Martowardojo said during a press briefing on Tuesday.
He added that the economy grew in the third quarter and is expected to continue to pick up in the fourth quarter.
Third-quarter growth was recorded at 4.73 percent year-on-year (yoy), higher than that of the previous quarter at 4.67 percent yoy, he said.
The increase was particularly fueled by the governments strong consumption and investment, he said.
"This is line with the significant progress achieved in the realization of government infrastructure projects, coupled with the governments capital expenditure, which rose 38.8 percent, as of October 2015," he said.
Furthermore, household consumption also remained quite strong, reflected by the improving purchasing power of the public, he said.
On the external side, low global commodity prices and weak economic growth of trade partners, including the United States, China and Singapore, caused exports to further contract, he said.
"Bank Indonesia believes the Indonesian economy will continue to pick up in the fourth quarter of 2015, fueled by the expedited realization of the governments infrastructure projects," he said.
ANTARA
