Indonesian central bank sees Q2 GDP growth below 5%

[JAKARTA] Indonesia's central bank governor said on Friday annual growth in Southeast Asia's largest economy would likely remain below 5 per cent in the second quarter.

Demand ahead of the holiday at the end of the Muslim fasting month "is not quite strong yet because budget disbursement is limited and corporate performance is quite depressed," central bank governor Agus Martowardojo told reporters.

In January-March, Indonesia had annual growth of 4.7 per cent, the slowest rate in six years.

Bank Indonesia also said it expected the annual inflation rate in June to be 7.40 per cent, compared with 7.15 per cent in May, and the June pace to be 0.66 per cent higher month-on-month.

REUTERS