The North Sulawesi`s economy grew only 5.8 percent in the April-June period, slowing from a growth of 6.43 percent year-on-year in the previous quarter, head of Bank Indonesia representative office for North Sulawesi Soekowardojo said here on Wednesday.
The growth rate was also lower than 6.15 percent in the same period last year, but though slowing the economy of the province`s economic growth was higher than the country`s average of 5.01 percent in the second quarter of this year.
The economic growth fell short of expectation as a result of contraction in export, Soekowardojo said. He attributed the decline in performance to falling prices of commodities in the world market.
A contraction in government spending also contributed to the decline in the economic performance in general weaker performance, he said.
The economic slowdown in the second quarter of 2017 was attributable mainly to contraction in government spending and exports.
The economic slowdown of the province in the second quarter of 2017 was caused by contraction of the government spending and decline in exports.
The government consumption shrank with low realization of non capital government spending and delay in the payment of the 13th salary (bonuses) for civil servants.
Meanwhile the price of the province`s main commodity coconut oil shrank to US$1,627 per metric ton in the second quarter from US$1,701 in the first quarter of 2017 resulting in a decline in export performance of the province. ***3***
(T.SYS/C/H-ASG/B003) 09-08-2017 21:14:08