A corner of Jakarta (Source: Indonesia Expat)Jakarta (VNA) - TheInternational Monetary Fund (IMF) projected that Indonesia’s economic growthwill remain in positive territory this year, albeit ever so slightly, as thecoronavirus pandemic puts the global economy at risk of its worst recessionsince the Great Depression of 1930.
In its Aprilupdate to the World Economic Outlook titled “The Great Lockdown”, the IMFlowered Indonesia’s GDP growth projection to 0.5 percent from 5.1 percent inits October projection.
“Thesignificant downward revision to the 2020 growth projection reflects largeanticipated domestic disruptions to economic activity from COVID-19,” thereport says. The IMF expects the virus to hit Indonesia’s economy as thecountry relies heavily on the export of commodities rather than finished goods.
“Amongdeveloping economies, all countries face a health crisis, severe externaldemand shock, dramatic tightening in global financial conditions, and a plungein commodity prices,” the report says. “They will have a severe impact oneconomic activity in commodity exporters.”
However, theIMF predicted that the Indonesian economy will recover in 2021, with anexpected growth rate of 8.2 percent, which would be the highest rate seen since1995, during former President Soeharto's regime.
The IMF alsoprojected that the country’s unemployment rate will rise to 7.5 percent thisyear from last year’s 5.3 percent as the pandemic is upending supply chains,forcing companies to lay off employees and crushing demand for goods asconsumers stay at home.
According to the IMF, the global economy willcontract by 3 percent this year, far worse than during the 2009 globalfinancial crisis, as the pandemic put the global economy at risk of worstrecession since the 1930 Great Depression.
However, the global economy is expected to grow by 5.8 percent in 2021,signaling a sharp rebound from this year's recession./.
VNA
