Indonesia’s economy + 5.30% in second quarter

Indonesia’s economy likely expanded 5.3 per cent in the second quarter from the same period a year earlier, slightly faster than the first-quarter’s growth pace, a Reuters poll showed.

All 12 analysts saw the annual growth rate for April-June as below the same period of 2013, when the economy expanded 5.76 per cent. In January-March 2014, the annual rate was 5.21 per cent.

While median forecast for the latest quarter is higher than the rate for the previous three months, Indonesian growth rates have generally been declining since 2012. One factor has been how the central bank tightened money policy. Last year, it raised the benchmark policy rate by 175 basis points to help the frail rupiah and contain the country’s current account deficit.

On a quarter-on-quarter basis, not seasonally adjusted, GDP in April-June probably grew 2.63 per cent from the preceding three months, according to projections by four analysts. For January-March, Indonesia reported on-quarter, not seasonally adjusted growth of 0.95 per cent.