13:02 | 08/04/2020 Global Economy
Indonesia’s economy is predicted to grow by only 2.5 percent this year, the lowest over the last four years and a 50-percent decline compared to 2019's growth rate.
|Jakarta's light rail system under construction - Photo: Jakartapost|
According to the Asian Development Outlook 2020 published recently by the Asian Development Bank (ADB), the COVID-19 pandemic that comes with falling commodity prices and financial market turmoil will cause serious impact on the Indonesian economy, as well as the world's this year.
The situation is exacerbated by the weakening economies of several trade partners of Indonesia, the report said.
In a press release, Country Director of ADB in Indonesia Winfried Wicklein said although Indonesia has a strong macroeconomic foundation, the COVID-19 crisis has changed the direction of the country's economy, with worsening external situations and weakening domestic demand.
Winfred estimates that the Indonesian economy can gradually return to its growth track in 2021 if the government effectively takes decisive actions to address health and economic impact of the disease outbreak.
ADB is one of the organisations that lowered Indonesia's growth forecast for this year due to the COVID-19 pandemic. Earlier, the World Bank said that the country’s economy will be at only 2.1 percent in 2020 if the pandemic is put under control in June.
Meanwhile, the Indonesian government recently forecast that its yearly economic growth is likely to sit at only 2.3 percent.