The IMF Lowers Indonesia’s Economic Growth Forecasts as COVID-19 Continues to Impact a Recovery

The International Monetary Fund (IMF) has lowered its economic growth forecasts for Indonesia down to 4.3% for 2021 (previous estimate at 4.8% in January 2021), whilst maintaining its estimate at 5.8% for 2022.

Why it Matters?

In its latest projections made in March 2021, Indonesia’s Finance Minister Sri Mulyani Indrawati acknowledged that COVID-19 remained a threat to Indonesia's recovery and that Indonesia's economy was still anticipated to contract by 1.0% to 0.1% in the first quarter of 2021. However, Indrawati noted the expectation of a recovery in the second quarter of 2021. To support the economic recovery, the Government of Indonesia has allocated IDR 699.4 trillion (48.2 billion) towards economic stimulus programs in the National Econo...