Indonesia: Growth still likely to improve from a slow Q1 - Nomura

Research Team at Nomura, notes that the Indonesia’s Q1 GDP growth slowed to a disappointing 4.9% after improving to 5.0% in Q4 2015, led by a moderation in investment spending.

Key Quotes

“For 2016, we still forecast GDP growth of 5.2% which implies a pick-up in the coming quarters, driven by stronger domestic demand.

We continue to expect the fiscal stance to be more expansionary and Bank Indonesia to cut its policy rate by another 25bp in H2.”