16:09 | 27/10/2017 Global Economy
The Bank Indonesia (BI) has forecast that economic growth in the fourth quarter of this year will reach 5.3-5.4 percent, higher than 5-5.1 percent from the previous quarter.
|Illustrative image - Source: asia-first|
BI Senior Deputy Governor Mirza Adityaswara said the Indonesian economy will grow between 5-5.4 percent, adding that the growth in the third and fourth quarter this year will be better than the initial forecast.
In the third quarter, the BI predicted that the figure will be in the range of 5.1-5.2 percent, higher than 5.01 percent in the second quarter.
The retail sector showed recovery with sales increase of 2.3-2.4 percent in September. The construction, particularly infrastructure began seeing recovery.
According to the meeting of the BI’s Board of Governors, the improvement in economic growth in 2017 is supported by an expansion in fiscal budget through the State income and expenditure budget 2017, such as the 13th payroll and social assistance.
Assistant Governor and head of the BI’s Department of Economic and Monetary Policy Dody Budi Waluyo said investments, especially those by the government, will still serve as the key drivers of economic growth this year and later contribute to boosting exports.
He added that consumption is forecast to be better in the fourth quarter, considering that government spending will be bigger in the last quarter and will have an impact on consumption.