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Indonesia's Q1 GDP growth seen inching up to 5.05% year on year

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Indonesia's economy likely grew at virtually the same annual pace in the first quarter as in October-December, a Reuters poll showed, indicating slow recovery so far from 2015's weak growth rate.

[JAKARTA] Indonesia's economy likely grew at virtually the same annual pace in the first quarter as in October-December, a Reuters poll showed, indicating slow recovery so far from 2015's weak growth rate.

The median forecast of 13 economists in a Reuters poll was for annual economic growth of 5.05 per cent in January-March, compared to 5.04 per cent in the last quarter of 2015.

The poll result is also very close to Bank Indonesia's expectation for 5.1 per cent growth in gross domestic product (GDP) in the first quarter. It sees full year growth of 5.2-5.6 per cent, while the government has forecast 5.3 per cent. For all of 2015, Indonesia grew 4.8 per cent, the slowest pace in six years.

Analysts in the poll forecast an on-quarter contraction of 0.19 per cent. Indonesia's quarter-on-quarter GDP numbers are not seasonally adjusted.

Five analysts in the poll who gave long term view said the economy may grow 5.1 per cent in 2016. If that happens, 2016 will end a five-year streak of slowing GDP growth.

REUTERS