Indonesian 3rd quarter GDP to surpass 2nd quarter

Jakarta (Antara News) - Coordinating Minister for the Economy Budiono said he expects a pickup in economic growth in the third quarter, supported by an ongoing decline in domestic interest rates.

GDP data for the three months to September is scheduled to be announced next week

"I expect third quarter (year-on-year) GDP growth to be higher than in
the second quarter," Budiono was quoted by AFP as telling reporters.

He, declined to give a specific figure, though he said the government's full year growth target of 5.8 pct will likely be achieved.

"There are positive signs this target might be achieved but let's wait until year-end," he said.

In the second quarter GDP grew 2.20 pct from Q1, and was up 5.22 pct year-on-year, with the rise largely driven by heavy government spending.

Earlier Bank Indonesia said GDP in the third quarter is likely to have expanded by 5.4 pct year-on-year, aided by firm exports. The projection is just above the 5.22 pct growth recorded in Q2.

In the fourth quarter last year and the first three months of 2006, growth slowed after the government raised fuel prices by an average of 126 pct on Oct 1, 2005. (*)
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