Indonesia GDP Growth Softens

(RTTNews) - Indonesia's economy grew at a slower pace in the second quarter but surpassed economists' forecast on government spending and investment, official data revealed Wednesday.

Gross domestic product expanded 5.29 percent from the previous year after rising 5.61 percent in the first quarter, Statistics Indonesia reported.

Economists had forecast the annual growth to ease to 5.1 percent. Nonetheless, this was the slowest growth in three quarters.

On a quarterly basis, Southeast Asia's economy grew 3.73 percent in the second quarter, exceeding economists' forecast of 3.5 percent.

Data showed that government spending registered a double-digit year-on-year expansion of 15.97 percent. At the same time, household expenditure rose only 5.06 percent. Gross fixed capital formation advanced 6.87 percent.

Exports increased 4.13 percent annually. Imports growth outpaced the increase in exports, up by 8.82 percent.