Indonesia’s economy is about to contract for the first time since the Asian currency crisis more than two decades ago, as the country fights virus cases.
Gross domestic product is expected to fall from 0. 6% to 1. 7% this year, Finance Minister Sri Mulyani Indrawati said Tuesday at a briefing in Jakarta. %.
“The recovery is still very early and fragile, so it will have to be maintained,” Indrawati said.
Southeast Asia’s largest economy is suffering from involving the coronavirus pandemic, as the number of new daily instances continues to break records. The worsening epidemic led to the renewal of the social estating brakes in the capital, which had plagued the expansion by the time quarter.
Consumption, investment and exports are expected to decline this year, pushing the economy into contracting in the third and fourth quarters, Indrawati said. The government maintains its expansion forecast for 2021 of 4. 5% -5. 5%.
Public procurement is expected to be the only component with a positive expansion from 0. 6% to 4. 8% this year, as the government hastened spending, he said. However, “this cannot be done alone, it will have to be accompanied by a recovery”. in the personal and business consumption sectors,” he added.
Another key to briefing:
– With claire Jiao and Rieka Rahadiana