Indonesia Investments' Subscriber Update - Indonesia Enters Recession
On Thursday 5 November 2020 Indonesia’s Statistical Agency (Badan Pusat Statistik, BPS) announced that Indonesia’s gross domestic product (GDP) contracted 3.49 percent year-on-year (y/y) in the third quarter of 2020. This pace of economic contraction in Q3-2020 was slightly more severe than we had predicted. Indonesia Investments had its outlook for Indonesia’s Q3-2020 economic growth at the range of -3.0 to -2.5 percent (y/y).
It also implies that Indonesia is now officially in an economic recession as the nation experienced two consecutive quarters of negative growth (Q2-2020 and Q3-2020). As is widely known, the self-imposed social and business restrictions in Indonesia (and around the globe), which aim at preventing the further spread of COVID-19 in society, have been causing serious damage to the Indonesian (and global) economy.
As expected, Indonesia’s economic contraction in Q3-2020 was not as severe as the one we saw in the preceding quarter (-5.32 percent y/y). Main reason is that the social and business restrictions were tightest in Q2-2020 (in Indonesia and abroad), thereby seriously interrupting economic activity that quarter.
This update consists of 15 pages
Our updates are only available to subscribers of the Indonesia Investments report. To receive updates on crucial economic, political and social developments, you can request for further subscription details through [email protected] or +62.8.788.410.6944 (including WhatsApp).
