AEIR 2019/2020

Economic growth is estimated to have slowed slightly, from 3.2% in 2017 to 3.0% in 2018. Higher volumes and global prices boosted the value of log exports by more than 25.0%. Exports of minerals and fish grew 29.9% and 15.1%, respectively. However, most crop exports declined in 2018, with copra and coconut oil falling most. Growth in services slowed to 3.5% in 2018, while domestic trade decelerated due to lower cash-crop output and higher taxes. Due to significantly reduced cash reserves, the government is concentrating on restoring fiscal stability, and thus slowed growth in government spending with substantial reductions in development expenditures. GDP growth is projected to slow to 2.4% in 2019 and 2.3% in 2020. Logging should slow, but be partly offset by construction on large infrastructure projects.

Source: Asian Development Outlook 2019, ADB.
Latest Month-Ago Year-Ago
Headline Inflation Rate 1 2.2 (Jun18)2.0 1.2
Merchandise Export Growth 1 -38.1 (Jan20)5.0 5.6
Exchange Rate Index 2 91.9 (Apr20)92.0 95.0
1 y-o-y, %.
2 Monthly average, January 2006 = 100, $/local currency.
Source: CEIC database.

Initiatives / FTAs