IMF Lowers Indonesia’s 2020 GDP Forecast; Recovery Anticipated in 2021 in Line with Government Estimates

In its latest update of the World Economic Outlook released on the 13th of October 2020, the International Monetary Fund (IMF) has revised down its estimate of Indonesia’s gross domestic product to a 1.5% contraction, compared to its previous estimate of a 0.3% contraction back in June 2020.

The IMF’s estimate revision comes as Indonesia continues to bring the COVID-19 pandemic under control. Official data showed that the total number of COVID-19 cases reached 340,622 as of the 13th of October 2020, with over 12,000 deaths reported. Local media reports indicate that Indonesia has been adding 3,000-4,000 cases on a daily basis since the 19th of September 2020.

The revised...