ADB lowers growth forecasts for Indonesian economy

Illustrative image (Photo: Jakartaglobe.com)

Jakarta (VNA) - The Asian Development Bank (ADB) has reduced its projections for Indonesia’s economy in 2020 and 2021 due to a continued slowdown in financial activity as a result of the continuing COVID-19 pandemic.

Accordingly, the ADB downgraded its growth forecasts for the Indonesian economy to minus 2.2 percent and 4.5 percent in 2020 and 2021, respectively, from the earlier projections of minus 1 percent and 5.3 percent.

The COVID-19 pandemic led to a contraction of around 3.5 percent year-on-year (yoy) in GDP in the third quarter, taking the country into its very first economic downturn given that the 1998 Asian monetary crisis, after a 5.32 percent contraction in the second quarter, according to information from Stats Indonesia (BPS).

“GDP forecast in 2020 has actually been downgraded for Indonesia, Malaysia and the Philippines as COVID-19 containment measures have obstructed financial healing,” ADB nation economist for Indonesia Emma Allen said in a virtual instruction on December 10./.