IMF Makes Significant Downward Revision to Indonesia’s Economic Growth Forecast

In its April 2020 update to the World Economic Outlook, the International Monetary Fund (IMF) lowered Indonesia’s 2020 GDP forecast to 0.5%, considerably lower than its previous projection of 5.1% in October 2019.

This downward revision comes largely on the back of the global COVID-19 pandemic that is causing economic turmoil and havoc in markets across the globe. The IMF anticipates severe disruptions to domestic economic activity in Indonesia, a country largely reliant on commodity exports, as opposed to finished good exports.

The IMF stated that it expects all developing markets to face external demand shocks, tightening global financial conditions, as well as a drastic dec...