Indonesia’s central bank forecasts growth at 5 percent in Q1 hinh anh 1Illustrative image (Source: The Business Times)
Jakarta (VNA) – The central bank of Indonesia has predicted the country’s economic growth in the first quarter at 5 percent – the lower limit of the targeted range of 5-5.4 percent for all of 2017, according to Antara News. 

Bank Indonesia (BI) Governor Agus Martowardojo said the first-quarter national economy will still be much affected by loose contribution of the government’s spending in Q4 of 2016 due to budget cut. 

The government slashed budget spending in 2016 to keep budget deficit under control. However, only budget spending on less productive activities were slashed.

BI had originally predicted the economy would grow 5.05 percent year-on-year in Q1 of 2017. But in late February, the realised fiscal spending did not push economic activities as a whole, the central bank had revised down its economic growth forecast from the targeted 5.05 percent in the first half of this year.

However, the central bank still maintains its economic growth forecast for all of this year at the targeted range of 5-5.4 percent.

The government has set this year’s economic growth target at 5.1 percent.-VNA