Cranes silhouetted against the setting sun at Tanjung Priok port in Jakarta (Photo: Reuters) Hanoi (VNA) - Indonesia's economy contracted in the second quarter for the first time in more than two decades as it was slammed by coronavirus restrictions, with warnings that the recovery could be among the weakest in Southeast Asia.
Output in the region's biggest economy slumped 5.3 percent on-year in April-June, the country’s statistics agency said. That marked Indonesia's first contraction since the first quarter of 1999 during the Asian financial crisis.
“Economic activity in Indonesia collapsed in the second quarter," research house Capital Economics said in note after the figures were published. "A failure to contain the virus effectively and inadequate policy support means the recovery is likely to be one of the slowest in the region," it added.
Last month, Indonesia's central bank cut interest rates for the fourth time this year in a bid to boost the struggling economy. The country has announced a stimulus package worth more than 48 billion USD to help offset the impact of the virus, which forced a large-scale shutdown that hammered growth.
Indonesia, home to nearly 270 million people, has been easing movement restrictions in a bid to head off economic collapse but COVID-19 infections are mounting, with cases topping 115,000 with and more than 5,300 deaths./.
Output in the region's biggest economy slumped 5.3 percent on-year in April-June, the country’s statistics agency said. That marked Indonesia's first contraction since the first quarter of 1999 during the Asian financial crisis.
“Economic activity in Indonesia collapsed in the second quarter," research house Capital Economics said in note after the figures were published. "A failure to contain the virus effectively and inadequate policy support means the recovery is likely to be one of the slowest in the region," it added.
Last month, Indonesia's central bank cut interest rates for the fourth time this year in a bid to boost the struggling economy. The country has announced a stimulus package worth more than 48 billion USD to help offset the impact of the virus, which forced a large-scale shutdown that hammered growth.
Indonesia, home to nearly 270 million people, has been easing movement restrictions in a bid to head off economic collapse but COVID-19 infections are mounting, with cases topping 115,000 with and more than 5,300 deaths./.
VNA
