What is the Target Growth Rate for Household Consumption?

In the 2018 State Budget, the government targeted economic growth of 5.4 percent. With that target, household consumption and Non-Profit Institutions Serving Households (LNPRT) are predicted to grow by 5.1 percent.

For information, throughout the first three quarters of 2017, household consumption grew below five percent, in line with the slowing of consumer purchasing power. In the first quarter it grew 4.94 percent, the second quarter 4.95 percent, and the third quarter 4.93 percent. The increase in electricity tariffs for customers with a capacity of 900 Volt Ampere (VA) for affluent households was one of the factors slowing household consumption. To boost household consumption, this year the government is improving its social protection programs and the targets for recipients of assistance.

Meanwhile, government consumption this year is targeted to grow by 3.8 percent, Gross Fixed Capital Formation (PMTB) or expenditure on capital goods to grow by 6.3 percent. Exports of goods and services are targeted to grow by 5.1 percent, while imports of goods and services are projected to grow by 4.5 percent.