Indonesian economy clocks 5.6% growth in Q2 as compared to India's growth rate of 4.8%
Indonesia, which replaced India as the second fastest growing economy in the world a few years ago, continued to grow faster than India in the second quarter of 2013-14, despite its economic growth rate standing at a four-year low.
India's growth rate in Q2 of 2013-14 stood at 4.8 per cent, sub-five per cent for the fourth quarter in a row. Compared to this, the Indonesian economy clocked 5.6 per cent growth in Q2, which was the weakest in four years. Indonesia's economy rose 5.8 per cent in the first quarter of 2013-14. India's economy, on the other hand, picked up pace from a four-year low of 4.4 per cent in the second quarter of the current financial year. Indonesia's economy was hit by weak exports and a low consumption level due to high inflation. Indonesia's inflation stood at 8.32 per cent in October. India also witnessed high inflation and consequent high interest rates dictated by RBI policy. As such, the demand of consumers in the economy, indicated by private final consumption expenditure (PFCE), remained low even as it grew higher than Q1. PFCE grew 2.16 per cent in this period against 1.62 per cent in the previous quarter. Last year, this had risen by 2.54 per cent. Retail-price inflation entered double digits in October in India after a gap of six months, clearly indicating that in the third quarter as well, demand might not pick up significantly. On the other hand, exports were one of the few saviours for the Indian economy. The outbound shimpments rose double digits for three consecutive months in the second quarter (at current prices).Cek berita, artikel, dan konten yang lain di Google News