Compared to the previous quarter, the domestic economy contracted again.

The domestic economy contracted by 0.34 percent in the first quarter of 2017 compared to the fourth quarter of 2016 (QoQ). This is the first contraction (negative economic growth) in the first quarter since 2010 and the second consecutive contraction following the fourth quarter of 2016. Contractions typically only occur in the fourth quarter.

From a production standpoint, the decline was due to contractions in several sectors. From an expenditure perspective, the contraction was driven by a 45.45 percent decrease in government consumption expenditure, a 5.42 percent decrease in gross fixed capital formation, and a 1.71 percent decrease in expenditure by non-profit institutions serving households (LNPRT), resulting in negative growth for the domestic economy in the first quarter of 2017.