Jakarta: Bank Indonesia (BI) has stated that the country's economic performance in the first quarter of 2019 remained positive, although the global economic growth fell short of expectations.
"The slow growth was inseparable from the impact of the seasonal pattern early this year, as well as the lower-than-expected global economic growth," Executive Director of BI Communication Department Onny Widjanarko said in a written statement released on Monday.
BI believed the country's economic growth in the first quarter of 2019, which stood at 5.07 percent year-on-year (yoy), was good, he said.
The economic performance indicated that the momentum of national economic growth could consistently be maintained although it slowed down compared to the fourth quarter of 2018 when it was recorded at 5.18 percent (yoy)
The economic growth of 5.18 percent in the fourth quarter of 2018 was chiefly fueled by domestic demand. The domestic demand remained high due to consumption by non-profit institutions serving households (LNPRT) and household consumption.
The LNPRT consumption in the first quarter of 2019 rose to 16.93 percent (yoy) from 10.79 percent (yoy) in the previous quarter, fueled by consumption related to the 2019 general elections.
Household consumption growth in the first quarter of 2019, which reached 5.01 percent (yoy), also remained steady although it slowed down compared to the previous quarter when it was 5.08 percent (yoy).
The good performance of household consumption was supported by controllable inflation, the public's improving income and consumer confidence. The domestic demand was also fueled by high investment growth in the development sector.
The net export performance was positive due to a shortfall in the country's imports amidst the declining exports, in line with the global economic slowdown and low global commodity prices.
Looking ahead, BI will continue to maintain macroeconomic stability and contribute to economic growth. The combined policies of the central bank, the government, and the relevant authorities will be strengthened to maintain the momentum of economic growth, he said.
BI has predicted the national economy will grow 5.0-5.4 percent this year. (Antara)