BI Positive Outlook for 1st quarter GDP Despite Sluggish growth

The economy of Indonesia is anticipated to gain momentum in the first quarter because of growth in exports, although it has a very slow progress pulled down by both lending and consumption reports giving negative results.

Southeast Asia as the biggest economy has a sluggish growth for the past five years until 2015. This is forecasted by some analysts to persist in its median forecast for 2017 with 5.00 percent for the first quarter, a little bit higher than the former 4.94 percent.

The Household consumption holds more than half of the overall GDP of the country and it is anticipated to weaken because of pessimistic retail and automobile data. The country is facing problems when it comes to bad loans that make it difficult for the Bank of Indonesia (BI) to spur the economy. Although, the benchmark eased by 150 basis points and some other lending rules. The current loan growth of the month of February still below the target figure for the year.