Indonesia’s second quarter GDP falls below 6 per cent

JAKARTA – Indonesia’s second quarter GDP has come in at a lower-than-expected 5.8% because of weaker private consumption and investment. This is the fourth consecutive quarter of slowing growth, after growth peaked at 6.4%% in the second quarter of 2012. BBVA Bank says the slowdown reflects the impact of uncertainty about the timing of an administered fuel price that took effect in June and subsequent inflation (8.6% y/y in July), increases in interest rates by Bank Indonesia (75 basis points in May and June), and weaker commodity prices.