Indonesian economy to contract 0.49 percent this year: minister

Indonesian economy to contract 0.49 percent this year: minister

A screen shot of Coordinating Minister for Economic Affairs, Airlangga Hartarto, revealing the economic growth forecast for Indonesia on Tuesday. (ANTARA/Dewa Wiguna)

Hopefully, it (the economy) will improve in the third quarter. It is predicted to grow minus two or minus one percent. But, we hope it will grow positively.
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs, Airlangga Hartarto, has predicted the Indonesian economy will contract 0.49 percent this year as a result of the COVID-19 pandemic.

“Hopefully, it (the economy) will improve in the third quarter. It is predicted to grow minus two or minus one percent. But, we hope it will grow positively,” he said while launching the coalition of joint action against corruption (CAC) at an online event here on Tuesday.

The Indonesian economy is expected to contract 1 percent in the third quarter of 2020 and to grow 1.38 percent in the fourth quarter of this year, he said adding, overall, the economy is expected to contract 0.49 percent this year.

He said the impact of the COVID-19 pandemic on the Indonesian economy has been relatively less severe than other countries.

Related news: Macroeconomic assumptions in 2021 draft state budget remain optimistic

Related news: Government readies additional stimulus for workers to boost economy


The Central Statistics Agency (BPS) had announced earlier that the Indonesian economy contracted 5.32 percent in the second quarter of 2020 from 2.97 percent in the previous quarter.

Several other countries also saw their economies fall deeper into a decline in the second quarter.

Hartarto said the US economy contracted 9.5 percent, the British economy 19.9 percent, and the French economy 19 percent in the second quarter. In fact, the last two countries suffered a recession, he remarked.

Related news: Indonesia ready to face global economic slowdown amid corona outbreak

Related news: Slowdown to hurt household, MSME, corporate, financial sectors most


 

 

Comments