Already Fragile Economic Recovery Hampered by Second COVID-19 Wave in Indonesia: Moody’s 

According to Moody’s Investors Service (Moody’s), Indonesia’s fragile economic recovery is likely to be hampered by the second surge of COVID-19 and associated lockdowns.

Why it Matters?

Moody’s lowered its forecast growth for Indonesia’s economic recovery in 2021 to 3.6%, slower than its earlier projection of 4.5%. If the vaccination rollout does not pick up pace, the adverse economic effects are anticipated to persist going into 2022, bringing the growth forecast for 2022 to 4.9% from 5.0%. As revenue is unlikely to rebound substantially, a slower recovery will pose fiscal policy issues, perhaps keeping deficits above pre-COVID-19 levels. The slowing pace will also hurt industries that rely on consumer sentiment, such...