Fitch Solutions Downgrades Indonesia’s 2020 Economic Growth Projection

Fitch Solutions (Fitch) has downgraded Indonesia's 2020 economic growth forecast to 2.8% from its initial estimate of 4.2% due to the expected deceleration in consumption and investment growth as global economic expansion declines during the COVID-19 pandemic.

Fitch also noted that the collaborative steps taken by the Government of Indonesia and Bank Indonesia (BI) may not be enough to mitigate the severe impacts of the COVID-19 outbreak on jobs and public health. In addition, Fitch also forecasted Indonesia’s private consumption to reduce to 1.2% in 2020 from 5.0% in 2019, due to increasing levels of unemployment.

While the Government expects its economy to grow 2.3% this year...