Economic Highlight:
Economic Growth Accelerates in 2Q 2016, And Will Likely Gain Pace in 2H 2016
Economic Growth Accelerates in 2Q 2016, And Will Likely Gain Pace in 2H 2016
¨
Indonesia
GDP growth increased to 5.2% y-o-y in 2Q, after
slowing down to +4.9% in the previous quarter. This was due to higher private
and government consumption spending but offset partly by a moderation in
investment and smaller net exports.
¨
By industrial origin, this was reflected in faster growth in
agriculture activities and stronger activities in manufacturing; trade;
information & communications and financial services & insurance
sectors. In addition, mining sector recorded a smaller contraction. A slowdown
in electricity & gas; water supply; construction; transport &
warehousing; accomodation, food & beverages; services and real estate
sectors, however, posed a dragged to the overall growth.
¨
Overall, 2Q 2016 economic growth showed a resilient domestic demand
helped cushioning sluggish external trade performance. This brings the economy
to grow by 5.0% y-o-y in 1H, in line with our estimation. We envisage the
situation to persist into 2H 2016 and the economy will likely grow at a faster
pace of 5.2% in 2H 2016, with domestic demand remains the main engine of
growth. As a result, we are of the view that the economy will likely post
higher growth of 5.1% in 2016, from +4.8% in 2015.
Best regards,
Rizki Fajar
Vice President
Economist
PT. RHB Securities
Indonesia
