Indonesia's first-quarter GDP slightly disappoints

Growth solid but just below expectations.

According to BBVA, Indonesia’s economy is the latest in Asia to show a disappointing first quarter outturn, of 6.0% y/y, just missing expectations of 6.1%.

Indonesia follows what has been a trend of recent Q1 GDP outturns also observed in China, Taiwan, and Singapore -- all also missing expectations as a result of sluggish exports and slowing investment.

Nevertheless, BBVA notes that domestic demand in Indonesia remains strong. "We maintain our full-year forecast of 6.3%. Risks, however, are to the downside given uncertain external prospects, and investor unease over a widening current account deficit and uncertainty with the government’s approach to an expected fuel price hike," it said.