Economics
Indonesian GDP Growth Disappoints, Adding to Currency Woes
- GDP rose 5.06% in first quarter versus estimate of 5.19%
- Central bank has cut interest rates eight times to spur growth
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Indonesia’s economy expanded at a slower pace last quarter than economists had forecast, a setback for the government after eight interest rate cuts in the past two years. The currency fell to the lowest since 2015.
Indonesia’s central bank had been cutting rates since the beginning of 2016 in a bid to spur growth in Southeast Asia’s biggest economy. While consumer spending has been sluggish, growth was supported last year by a pick up in exports.