Indonesia to witness an economic contraction

Indonesia Finance Minister Sri Mulyani Indrawati said on September 22 in Jakarta that the country’s Gross Domestic Product (GDP) would further contract this year. South-east Asia’s largest economy would likely shrink within a range of 1.7 per cent to 0.6 per cent on an annual basis in 2020, Finance Minister Sri Mulyani Indrawati told a virtual news conference. The previously expected range was 1.1 per cent contraction to 0.2 per cent growth. 

The forecast took into account a new third-quarter GDP outlook of a contraction of 2.9 per cent to 1 per cent, from the previous range of 2.1 per cent to flat growth, and potential negative growth in the October-to-December period, she said. 

Government consumption is set to be the only component showing positive growth of 0.6% to 4.8% this year as the government accelerates spending, she said. However, “it cannot be done alone, it must be accompanied by a recovery in the private consumption and business sectors,” she added. 

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