Indonesia sees slowest growth in 4 years

Java streetIndonesia’s economy in the third quarter grew 5.62 per cent from a the same period year earlier, its slowest pace in nearly four years, as weak exports and consumption dragged on growth in Southeast Asia’s biggest economy, the statistics bureau said on November 6.

The rate was slower than 5.8 per cent in the previous quarter and in line with market expectations. A Reuters poll had projected economic growth of 5.6 per cent from a year earlier, and 2.93 per cent from the previous quarter. Bank Indonesia has a target of 5.5 to 5.9 per cent growth this year.

Indonesia’s trade balance in September 2013 swung back into deficit as softer commodity prices hit exports, likely renewing pressure on the rupiah as it confronts capital outflow risks. Manufacturing activity in September showed moderate improvement helped by strong expansion in production and an increase in new orders. But export orders remained weak, down for the 5th consecutive month.

Meanwhile, domestic demand has been impacted by rising fuel prices and rising interest rates. Fuel prices in the country surged earlier this year after the government removed its subsidy programme. Petrol prices went up by 44 per cent while diesel prices rose by 22 per cent, leading to higher transportation costs and electricity bills.



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Indonesia's economy in the third quarter grew 5.62 per cent from a the same period year earlier, its slowest pace in nearly four years, as weak exports and consumption dragged on growth in Southeast Asia's biggest economy, the statistics bureau said on November 6. The rate was slower than 5.8 per cent in the previous quarter and in line with market expectations. A Reuters poll had projected economic growth of 5.6 per cent from a year earlier, and 2.93 per cent from the previous quarter. Bank Indonesia has a target of 5.5 to 5.9 per cent growth this year. Indonesia's...

Java streetIndonesia’s economy in the third quarter grew 5.62 per cent from a the same period year earlier, its slowest pace in nearly four years, as weak exports and consumption dragged on growth in Southeast Asia’s biggest economy, the statistics bureau said on November 6.

The rate was slower than 5.8 per cent in the previous quarter and in line with market expectations. A Reuters poll had projected economic growth of 5.6 per cent from a year earlier, and 2.93 per cent from the previous quarter. Bank Indonesia has a target of 5.5 to 5.9 per cent growth this year.

Indonesia’s trade balance in September 2013 swung back into deficit as softer commodity prices hit exports, likely renewing pressure on the rupiah as it confronts capital outflow risks. Manufacturing activity in September showed moderate improvement helped by strong expansion in production and an increase in new orders. But export orders remained weak, down for the 5th consecutive month.

Meanwhile, domestic demand has been impacted by rising fuel prices and rising interest rates. Fuel prices in the country surged earlier this year after the government removed its subsidy programme. Petrol prices went up by 44 per cent while diesel prices rose by 22 per cent, leading to higher transportation costs and electricity bills.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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