Connect with us

Latest Aproko

Indonesia Economy Sees Weakest Growth In Almost Two Decades

Chinese language vacationers sporting facemasks as a preventative measure following a coronavirus outbreak which started within the Chinese language metropolis of Wuhan, stroll after arriving from Nusa Penida on the quick boat pier in Serangan island in Denpasar, on Indonesia’s resort island of Bali on January 27, 2020. SONNY TUMBELAKA / AFP.

 

Indonesia’s financial system grew within the first quarter at its slowest tempo for nearly 20 years, and economists warned Tuesday the coronavirus disaster would possible deal a good higher blow within the subsequent three months.

The information comes as governments all over the world battle to comprise the lethal illness, which has primarily shut down the worldwide financial system, which is predicted to fall into recession this 12 months.

Southeast Asia’s greatest financial system grew 2.97 p.c in January-February, the worst fee since 2001 and properly wanting the 5.07 p.c in the identical interval final 12 months. It additionally missed forecasts of 4 p.c enlargement, whereas marking a contraction of two.41 p.c from the earlier quarter.

Statistics company chairman Suhariyanto, who goes by one title, mentioned in a digital information convention: “No countries are immune to the COVID-19. Whether developed or developing countries, they were hit badly by the virus and Indonesia is no exception.”

READ ALSO: Kenya Calls for Probe As Aircraft Crash Kills 6 Over Somalia

The statistics company pointed to a extreme hit to the important thing tourism sector, saying solely 2.6 million guests went to Indonesia within the three months, down a 3rd on-year.

And analysts warned of extra ache forward.

“GDP growth in Indonesia held up better than elsewhere in the first quarter, at least according to the official figures, but we doubt this resilience will last”, warned Capital Economics in a observe.

“Indonesia was later than other countries to lock down its economy, meaning more of the hit will have fallen in the second quarter,” it mentioned, including that it expects a “large contraction” in April-June.

Officers have reduce their official progress forecast to 2.three p.c for this 12 months, from a earlier estimate of 5.three p.c, and mentioned it might even undergo a contraction below a worst-case state of affairs

Indonesia has banned home prepare, air and sea journey till June 1 in an effort to comprise the unfold of the virus, which has contaminated greater than 11,000 individuals and killed 864 within the nation. Nonetheless, the toll is broadly believed to be a lot increased because it has one of many lowest testing charges on the planet.

The ban on sea journey might hamper the motion of hundreds of thousands in a rustic of some 17,000 islands the place passenger ferries are a key mode of transportation.

The federal government had already known as on residents of main cities, together with the capital Jakarta, to remain put.

AFP

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *