We will make every effort to bring the fourth-quarter growth closer to zero percent or to be positive.
Jakarta (ANTARA) - The Finance Ministry has revised downward the economic growth forecast for 2020 in the range of minus 1.7 to minus 0.6 percent, from minus 1.1 to plus 0.2 percent earlier.

"The Finance Ministry has revised the forecast in September. We earlier forecast (the economy to grow) in the range of minus 1.1 to plus 0.2 percent this year. However, as per our newest forecast, (it will contract) within the range of minus 1.7 to minus 0.6 percent," Finance Minister Sri Mulyani Indrawati stated here on Tuesday.

The revision indicated that the national economic growth will remain in a negative zone in the third quarter and inch close to zero percent in the fourth quarter, she noted.

"We will make every effort to bring the fourth-quarter growth closer to zero percent or to be positive," she affirmed.

Indrawati forecast household consumption and non-profit institutions serving households to contract minus three percent to plus 1.5 percent, with the total outlook for 2020 at a contraction range of 2.1 to minus 1 percent.

Government consumption is projected to grow significantly by 9.8-17 percent in the third quarter owing to the accelerated use of budget funding, she noted.

"In total, government consumption will (grow) in the range of 0.6 to 4.8 percent throughout this year. Hence, the government has made all-out efforts through the budget policy or expansion of the counter-cyclical fiscal policy," she remarked.

On the other hand, gross fixed capital formation during the third quarter is expected to contract minus 8.5 to minus 6.6 percent. Overall, it will contract minus 5.6 percent to minus 4.4 percent all through this year.

Exports in the third quarter are projected to contract within the range of minus 13.9 to minus 8.7 percent. Overall, the exports will contract between minus nine percent and minus 5.5 percent throughout the year.

Imports in the third quarter are also forecast to contract within the range of minus 26.8 percent to minus 16 percent, thereby causing the total contraction to fall deeper to minus 17.2 to minus 11.7 percent.
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Translator: Astrid Faidlatul H/Suharto
Editor: Fardah Assegaf
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