Indonesia’s 2020 Economic Growth Forecast Lowered Further Amidst COVID-19; Signs of Recovery Visible: Finance Minister

Indonesia’s Finance Ministry has downgraded the country’s 2020 economic growth forecast further ahead of the seasonal December holidays. Sri Mulyani Indrawati, Indonesia’s Finance Minister, stated on the 21st of December 2020 that the Government of Indonesia now forecasts the country’s gross domestic product (GDP) to contract between 1.7% and 2.2% year-on-year (YoY) in 2020.

This is primarily driven by lower household spending, which accounts for more than fifty percent of the country’s GDP. Indrawati stated that household spending is expected to decline by a further 3.6% to reach 2.6% YoY amidst a rise in COVID-19 cases and tighter restrictions that will negatively impact consumption.

On a more positive note, the Finance Minister stated th...