Jakarta (ANTARA News) - Bank Indonesia (BI) Governor Agus Martowardojo believes that the national economy will grow above 5.01 percent in the first quarter of 2018 or higher than the growth in the same period of 2017.
The first-quarter growth was fueled by the business worlds good performance, coupled with the continuation of government programs as indicated by higher imports of raw materials since December 2017, he said here on Tuesday.
However, the economy in the first quarter of 2018 will grow at a slower pace than in the fourth quarter of 2017 when it expanded by 5.19 percent year-on-year.
"Since December, imports have grown highly, contributed mostly by the import of raw materials. We also predict the balance of trade will still record a deficit," he said.
Household consumption in the first three months of 2018 also improved as compared to the trend of annual consumption in the first quarter of 2018.
The good household consumption resulted from the distribution of the first phase of village funds.
The amount of village funds that has been disbursed reached Rp2.92 trillion, accounting for 24.4 percent of the ceiling of Rp12 trillion in the initial phase.
The government is expected to allocate Rp60 trillion in village funds this year.
The village funds, coupled with social assistance from the government will sustain the contribution of household consumption to the national economic growth this year, he said.
Household consumption grew 4.9 percent last year, less than the annual trend of 5 percent.
"In general, the sources of our growth rest with investment, exports and consumption," he added.
Source: ANTARA News