Indonesian Economy Contracted 2.07 Percent in 2020

JAKARTA, NusaBali.com

The Indonesian economy contracted at a slower pace of 2.07 percent year-on-year in 2020 as opposed to the government's projected contraction of 2.2-1.7 percent, according to the Central Statistics Agency (BPS).

"Cumulatively, the Indonesian economy contracted 2.07 percent in 2020 as compared to that in 2019," BPS Chief Suhariyanto stated during a press conference here on Friday (5/2/2021).

Economic growth in 2020 had covered the fourth-quarter growth, which also slipped 2.19 percent, despite the government having made some improvements, he remarked. The Indonesian economy has shown signs of contraction due to the Covid-19 pandemic since the first quarter of 2020 when it only recorded a growth of 2.97 percent. Under normal circumstances, the Indonesian economy grows on an average of five percent (yoy) in the first quarter.

The pandemic, which restricted economic activity and human mobility, has pushed Indonesia into recession after its economic growth contracted 5.32 percent in the second quarter and 3.49 percent in the third quarter of last year. However, better economic performance in the third quarter of 2020 as compared to that recorded in a quarter earlier last year raised optimism about economic recovery. 

Moreover, the government had endeavored to provide stimuli and remind the public to stay disciplined in following health protocols, while the Covid-19 vaccine has been discovered. Under such circumstances, the government has forecast the economy to contract by 2.2 to 1.7 percent in 2020. *ant