Jakarta, mpi-update. Bank Indonesia menmperkirakan government budget cuts and the weak performance of exports has made economic growth the third quarter 2016 amounted to only 5.02 percent or lower than the second quarter of 2016 of 5.19 percent.
Executive Director of the Department of Communication BI Tirta Segara in a statement on Monday night, said the budget cuts resulting from the share of government consumption to the economy in the third quarter of 2016 was still limited.
“A weak government consumption expenditure is affected by government austerity policies. While the weakening export performance in line with the global economic recovery is not strong and commodity prices are still relatively low, “said Tirta Segara.
With economic growth in the second quarter of 2016 amounted to 5.02 percent, the cumulative growth in 2016 until the third quarter had reached 5.04 percent.
overall, according to data Statitistik Central Agency (BPS) household consumption remains the largest contribution to the formation of the structure of the Gross domestic Product the third quarter of 2016, reaching 55, 32 percent, followed by gross fixed capital formation 31.98 percent, 17.74 percent exports, government consumption of 8.97 percent, 1.15 percent LNPRT consumption and imports 16.91 percent negative.
BI assess the contribution of investment for economic growth is not maximized. However, other related components to build, the Central Bank see a positive trend of household consumption, which will also be supporting the improvement of economic growth in the fourth quarter of 2016. The positive trend in household consumption of goods such as price stability is maintained.
For the fourth quarter 2016 projections, estimates Tirta simultaneous elections of regional heads will also stimulate growth in the consumption of nonprofits. As for the recovery of investment contributions, Tirta hope the Government Policy Package will be effective to enhance the competitiveness and improve the investment climate. (Ant.)
mpi-update.com
0 Response to "BI: Trimming Budget Affect Economic Growth"
Post a Comment