Indonesia’s Q1 GDP growth disappoints

JAKARTA: Indonesia reported lower than expected growth in the first quarter, but many economists still expect enough of a rebound this year that the country can avoid further slowing and grow more than 5 percent in 2016.The statistics bureau said on Wednesday that Southeast Asia´s largest economy expanded an annual 4.92 percent in the January-March quarter, below the median 5.05 percent in a Reuters poll and the October-December pace of 5.04 percent.

Growth weakened for the fifth straight year in 2015, to 4.8 percent, as poor commodity prices, contracting exports, tepid investment and waning consumption produced the lowest growth rate since 2009.But the economy gained some momentum in the second half of last year as newly-appointed ministers accelerated government spending.  The statistics bureau took an optimistic tone.

"Our start in 2016 is better than the start of 2015," said bureau head Suryamin.

"Economic activity almost always slows in the first quarter, especially after growing higher in the fourth quarter.

In the first quarter of 2015, annual growth was 4.73 percent.

Bureau data showed consumption was stable in the first quarter and there was a rise in government-led investment from a year earlier.  However, investment growth was weaker than in the December quarter.

The bureau said a major reason for slower growth was a drought worsened by the El Nino weather phenomenon, which hurt crop output.