JAKARTA. The Asian Development Bank (ADB) is projecting that Indonesia's economic growth in 2020 will reach 2.5% in 2020 due to the coronavirus (Covid-19) pandemic.
According to the April edition of the Asian Development Outlook (ADO) 2020, published on Friday (3/4), the Covid-19 pandemic which has caused oil prices to freefall and financial markets to slump will have a severe impact on the Indonesian economy this year.
"If the government has firm and effective policies in response to the health and economic impacts of the outbreak, particularly in order to protect poor and vulnerable groups, the economy can gradually rebound next year," said ADB Country Director for Indonesia Winfried Wicklein as quoted by Kontan.co.id.
In addition to much slower economic growth due to declining domestic demands and business sentiment, ADB is also projecting a higher inflation rate in Indonesia this year.
Indonesia's current account deficit (CAD) is also predicted to increase to 2.9% of the GDP in 2020 due to significantly declining export revenue from tourism and commodities. (AM/MS)