TEMPO.CO, Jakarta - The Governor of Bank Indonesia (BI) Agus Martowardojo predicts that the second quarter of 2017 (April-June) will see slower economic growth due to the shift in government and consumer spending realization to the third quarter.
Consumer spending has not increased as expected because Eid bonuses are paid in the third quarter. “Moreover, government spending is also slowing down,” he said yesterday.
Agus has not revealed BI’s revised economic growth forecasts in the second quarter. Before the revision, Bank Indonesia predicts that the second quarter this year will see 5.11 percent year-on-year (yoy) economic growth.
Read: Bank Indonesia Optimistic with Economic Growth of 7 Percent
However, he said, economic growth correction in the second quarter of 2017 will not have a significant impact on the full-year economic activity. He reasoned that the economic growth in the third quarter (June-September) and the fourth quarter (October-December) will be better than predicted because economic activities are shifted to the said quarters.
The central bank earlier predicted 5.2 percent (yoy) economic growth in the third and fourth quarter. As such, despite possible changes, the monetary authority holds its economic growth projection this year at around 5-5.4 percent (yoy).
ANGELINA ANJAR SAWITRI | ANTARA
