Indonesia lowers GDP forecast for 2020

YAKARTA, 14 Aug (Reuters) – Indonesia’s Finance Minister Sri Mulyani Indrawati said Friday that he had revised downwards his forecast for gross domestic product this year, from a 1.1% contraction to 0.2% growth.

The government’s previous GDP forecast for 2020 ranged from a contraction of 0.4% to an expansion of 2.3% below 5% in 2019 due to the consequences of the coronavirus pandemic.

Indrawati attributed the revision to weaker-than-expected economic activity in the quarter.

On Friday, President Joko Widodo proposed to parliament a budget for 2021 that represents an expansion of GDP from 4.5% to 5.5% next year. (Report through Tabita Diela, Fransiska Nangoy and Gayatri Suroyo edited through Ed Davies)

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