Thursday, 25th May 2017

BI predicts economy to grow 5.1% in Q2

19th May 2017 | 3.872 Views
Jakarta (ANTARA News) - Bank Indonesia (BI) has predicted the countrys economy will grow 5.1 percent year-on-year in the second quarter from April to June this year due to further improvement in export performance.

"Our projection is 5.1 percent in the second and third quarters, and it could be above 5.2 percent in the fourth quarter," central bank governor Agus Martowardojo said at a press conference here, Thursday.

BI has seen the countrys export performance continue to improve following increasing demand for commodities from China and India, while in the manufacturing industry demand from European importers has also increased.

"The price index of our export commodities are predicted to increase by around 15 percent," BI deputy governor Perry Warjiyo mentioned.

Besides exports, he said the buying power of the people had continued to improve, boosting household consumption.

Warjiyo predicted that household consumption growth in the last three quarters could be above five percent, adding that in the first quarter it grew 4.99 percent.

BI has called on the government to accelerate realization of capital spending to further boost economic growth, he remarked.

"We hope the capital spending will boost investment growth, especially, in the construction sector and stimulate economic growth," he stressed.

Besides construction investment, Warjiyo also saw non-construction investment grow, spurred by the revival drive to improve export performance.

"So our economic growth projection for the whole year remains at the midpoint between 5 and 5.4 percent," he maintained. (*)