GDP falls 8.51% in first quarter<\/p>\n
JAKARTA (JP): Indonesia's economy contracted by 8.51 percent
\nin the first quarter of 1998, the Central Bureau of Statistics
\nsaid yesterday.<\/p>\n
Sugito Suwito, the agency's chairman, also predicted that
\ngross domestic product (GDP) would shrink by 10.1 percent this
\nyear, compared to the government's prediction in April that the
\neconomy would contract by 5 percent this year.<\/p>\n
This is the first time that the government's statistics agency
\nhas published quarterly figures for GDP growth rates. In the
\npast, the government published the annual GDP figures as part of
\nthe president's state of the nation address in August.<\/p>\n
The GDP figure is calculated based on 1993 constant prices.<\/p>\n
The agency said the construction sector was the worst hit by
\nthe recession, contracting by 27.16 percent. The manufacturing
\nsector followed with 18.58 percent, trade, hotels and restaurants
\n(14.38 percent), financial services (11.1 percent), mining (9.65
\npercent), other services (3.7 percent) and transportation and
\ncommunications (2.5 percent).<\/p>\n
Only agriculture and utilities (electricity, gas and clean
\nwater) booked positive growth during the first quarter,
\nrespectively by 28.47 and 7.1 percents.<\/p>\n
The agency said Indonesia's month-on-month inflation rate rose
\n05.24 percent in May, bringing the total increase in the consumer
\nprice index to 40.06 percent in the first five months of 1998.<\/p>\n
Sugito predicted that inflation would reach 80 percent to 85
\npercent this year, contingent on an absence of extraordinary
\nhappenings such as last month's massive rioting in Jakarta and
\nother cities. \"But if something like rioting happens again,
\ninflation could surpass the 100 percent level,\" he warned.<\/p>\n
Sugito said the main driver of inflation during the first five
\nmonths of this year was the prolonged monetary crisis, compounded
\nby bad farm harvests and increasing fuel prices.<\/p>\n
Interruptions and breakdowns in the distribution network,
\nespecially because of the unrest in Jakarta and other cities last
\nmonth, also contributed to the high inflation rate for May.<\/p>\n
Food prices rose 3.90 percent, processed food and cigarette
\nprices 4.00 percent, housing prices increased 4.14 percent,
\nclothing 4.53 percent, health 2.4 percent and education and
\nrecreation 1.41 percent. Transportation and communication costs
\nshot up 17.25 percent.<\/p>\n
On international trade, the bureau said Indonesia booked a
\nsurplus of US$5.09 billion during the first quarter of this year,
\nwith exports reaching $12.29 billion and imports $7.2 billion.<\/p>\n
Exports declined by 0.9 percent during the first quarter of
\nthis year to $12.29 billion, with non-oil exports rising 9.5
\npercent to $10.02 billion and oil and gas exports falling 30.17
\npercent to $2.27 billion.<\/p>\n
Meanwhile, imports reached $7.2 billion, with non-oil imports
\ntotaling $6.2 billion, oil and gas $990 million. (rid)<\/p>",
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