In 2019, solid economic growth was recorded at 5.02 percent, albeit down slightly from 5.17 percent in 2018. In the fourth quarter of 2019, economic growth stood at 4.97 percent (yoy), down slightly from 5.02 percent (yoy) in the previous period.
"The main driver of economic growth in 2019 was domestic demand, as export performance declined," the central bank said in a press release issued on Wednesday, February 5, 2020.
Solid domestic demand was a key contributor to economic growth momentum in 2019 as exports languished on dwindling global demand and sliding international commodity prices. Domestic demand was influenced by stable household consumption, which grew 5.04 percent in 2019, relatively unchanged from the 5.05 percent posted in 2018.
Household consumption was maintained in line with controlled inflation and upbeat consumer confidence. Furthermore, the general election held in 2019 edged up consumption by non-profit institutions serving households (NPISH) to 10.62 percent from 9.10 percent in 2018.
Domestic demand was also buoyed by strong investment performance, building investment in particular which grew 5.37 percent in the reporting period, similar to the 5.41 percent recorded in 2018. Services in the tertiary sector were the main locomotive of economic growth in 2019, led by communications and information, financial services and insurance as well as other services.
Looking forward, BI projects robust economic growth supported by stronger exports and household consumption. In addition, investment is also expected to pick up in line with infrastructure development as well as growing business confidence stoked by exports and ease of doing business thanks to implementation of the Government's Omnibus Law on Job Creation.
"Moreover, BI will continue to strengthen policy coordination with the Government and other relevant authorities to maintain economic stability, stimulate domestic demand, exports and tourism as well as attract foreign capital inflows, foreign direct investment (FDI) in particular," the central bank stated.