Indonesia's Q1 GDP Growth Beats Forecasts, at Highest in 3 Quarter

ECONOMIC GROWTH - JAKARTA. Indonesia's economy grew by 5.11% in the first quarter from a year earlier, the highest in three quarters and faster than expected, data from the statistics bureau showed on Monday.

Economists polled by Reuters had expected Indonesia to post annual growth of 5% in the January-March period. Annual growth in the fourth quarter was 5.04%.

On a quarterly, non-seasonally adjusted basis, gross domestic product (GDP) shrank 0.83% in the first quarter, compared with a 0.89% contraction forecast in the poll.

Southeast Asia's largest economy has taken a hit from declining commodity exports in the past year. The resource-rich country is the world's biggest exporter of thermal coal, palm oil and nickel, among other commodities.

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But in the January-March quarter, campaign expenditure for the Feb. 14 election and higher household spending during the Muslim fasting month of Ramadan, which started in March, bolstered economic activity. Household spending makes up over half of Indonesia's GDP.

The first-quarter growth rate was slower than the government's forecast of 5.17%.

The statistics bureau is due to release the GDP breakdown later on Monday.