Asia Regional Integration Center

Growth accelerated to 8.3% in the first half of 2018 from 6.9% in the same period of 2017, reflecting higher demand. Industry excluding construction expanded by 6.8% with strong growth in machinery, food, beverages, pharmaceuticals, textiles, basic metals, and mineral products. Construction grew by 8.8%, reflecting higher investment. Services rose by 9.5% with gains in all subsectors, while agriculture grew by 5.7% following a 5.3% decline in 2017.

On the demand side, private consumption grew by 4.4% in the first half of 2018 on higher consumer lending, moderate inflation, and positive consumer sentiment. Fiscal consolidation cut public consumption by 9.1%. Total investment increased by 76%, reflecting a sharp rise in inventories, increased government capital spending, and higher private and foreign direct investment. Net exports declined as imports outgrew exports.