JAKARTA, Mar 18, 2015 - (ACN Newswire) - Domestic economic growth will begin to improve in the first quarter of 2015, and the national economy will grow at a higher pace than last year's 5.1 percent, Bank Indonesia (BI) said.
"Economic growth in the first quarter of 2015 is expected to be higher than that in the previous quarter due to strong private consumption and all efforts towards keeping the inflation rate in check," the Executive Director of the Communications Department of BI Tirta Segara stated at a press conference here on Tuesday.
Government consumption would also increase due to the rising government spending, he added.
Although, despite showing signs of improvement, exports would contract as a result of a decline in the prices of commodities and low demand from the global community, he explained.
Furthermore, Segara predicted that investment would grow at a limited rate in the first quarter of the year, but would increase in the following quarters owing to the rising government capital expenditure.
However, he refused to divulge the estimate of economic growth in the first quarter of 2015.
"Looking ahead, I believe that the economy will grow at a range of 5.4 to 5.8 percent in 2015, driven by rising investment due to realized investment in infrastructure projects, improving investment climate, strong consumption and gradually improving exports," he noted.
He also predicted that the global economic recovery would continue, fueled, in particular, by the strong economy of the United States.
The economic recovery of the United States was supported by rising consumption due to a decline in global oil prices and the improving manpower data of the country. (Antara)