Illustrative image (Photo: energitoday.com)

Jakarta (VNA) – Bank Indonesia (BI) has reduced its country’s GDP growth forecast from the previous 5 – 5.4 percent to 4.9 – 5.3 percent for this year, the Jakarta Globe newspaper reported.

The slower than expected global economy recovery post-Brexit had contributed to the forecast revision, BI Governor Agus Martowardojo said.

Meanwhile, the Indonesian Government plans to cut 184 trillion rupiah (about 14.2 billion USD), including previously announced budget cut in a bid to keep budget deficit below the legal limit of 3 percent of GDP.

During the first semester, the government spent 37 percent of the 1,306 trillion rupiah (99 billion USD) budgeted in the 2016 revised state budget, according to the Central Statistics Agency.

The country's GDP expanded 4.91 percent in the first quarter of 2016 and 5.18 percent in the following quarter.-VNA