Indonesia Q3 Growth Slowing

Indonesia’s economic growth is expected to have cooled in the third quarter due to slow private investment and a cut in government spending, indicating that Southeast Asia’s largest economy is struggling to mount a strong rebound .The median forecast of 12 analysts in a Reuters poll was for gross domestic product growth of 5.04% in July-September year-on-year, below the 5.18% reported for the previous quarter. The data is due on Monday, Nov. 7. Indonesia’s central bank has slashed its benchmark policy rate six times this year, by a total of 150 basis points, in an effort to lift growth. The resources-dependent economy grew 4.79% last year, its weakest since 2009, pressured by lower international commodity prices, slower growth in China, tepid foreign investment and infrastructure bottlenecks. The pace of growth has slowed in each of the past five years. Bank Indonesia last month said third quarter growth may have not been as strong as it initially expected, and cut its forecast to 5% from an earlier view of 5.2%.