By I Made Sentana
JAKARTA, Indonesia--Indonesia's economic growth slowed slightly in the third quarter, with tighter government purse strings constraining growth, though the pace of expansion remained above the 5% mark.
Southeast Asian's largest economy grew 5.02% during the July-September period from a year ago, slowing from 5.18% in the second quarter, the official statistics agency said Monday. Sequentially, the economy grew 3.20% over the second quarter, compared with 4.02% growth previously, it said.
The median forecast of 11 economists polled by The Wall Street Journal was for 5.06% year-on-year growth, and 3.25% quarter-over-quarter expansion.
"The growth is quite good, but must be bolstered further," theagency's chairman Suharyanto said. He partly blamed the slowing growth on the slowdown in several of Indonesia's export markets, such as China and Singapore.
Jakarta has reined in spending to avoid a widening of the budget deficit amid a falloff in tax revenues. The more cautious government stance on fiscal stimulus may add to pressure on Indonesia's central bank to continue supporting the economy with further rate cuts.
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(END) Dow Jones Newswires
November 06, 2016 23:35 ET (04:35 GMT)
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