On the expenditure side, private consumption increased 0.2 percent year-on-year, following a 3.0 percent fall in the January to March period. This was the first expansion after three consecutive quarters of decline. Consumption of semi-durables, non-durable goods and net services increased amid continued decrease of durable goods.
Government spending rose 1.9 percent yoy, slowing from a 4.2 percent increase in the first quarter, as net purchase of goods and services increased a meager 0.6 percent.
Gross fixed capital formation dropped 6.9 percent yoy in the second quarter, following a 9.3 percent fall in the previous period. Private investment decreased by 7.0 percent, better than a 7.4 percent drop in the previous quarter, while public investment fell at a slower 6.7 percent (following a 16.6 percent fall in the first quarter).
Exports of goods rose 1.5 percent yoy, the fastest pace in five quarters while imports of goods contracted 11.4 percent.
On the production side, both agriculture and non-agriculture output expanded by 2.2 percent and 0.2 percent, respectively. Agricultural production was mainly driven by palm oil production in respond to plantation expansion while production of paddy and maize went up. As for the non-agriculture sector, growth was mainly driven by the transport and communication sector (+5.3 percent), financial intermediation (+6.1 percent), utilities (+3.4 percent), public administration and defense (4.0 percent) and education (+2.6 percent). Manufacturing production declined by 1.6 percent, due to a 0.1 percent and 3.8 percent fall in light, and capital and high technology industries.
On a quarter-over-quarter basis, the GDP increased 0.9 percent compared to a revised 1.9 percent fall in the previous period. The state planning agency cut again its 2014 GDP growth forecast to 1.5 percent to 2.0 percent from a previous 1.5 to 2.5 percent. For 2015, the country’s economy is projected to expand between 3.5 to 4.5 percent.