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IMF joins bandwagon, cuts Indonesia's GDP outlook as trade data weighs on economy
The IMF has drastically cut the world trade volume growth projection to 1.1 percent this year from 3.4 percent forecast in April.
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Ready for shipment: An employee watches over cranes as he talks on his interphone at a port in Qingdao in east China’s Shandong province on Thursday. (Agence France-Presse/-)
T
he International Monetary Fund has become the latest global institution to slash Indonesia’s economic growth projection amid thickening gloom surrounding world trade that is expected to spill over into the domestic economy.
In its October 2019 World Economic Outlook published on Tuesday, the Washington, DC-based institution expects the country’s gross domestic product (GDP) to expand just 5 percent this year – down 0.2 percentage points from its April projection – and 5.1 percent in 2020, down 0.1 percentage points from the earlier forecast.
Global growth in 2019 is seen at 3 percent, the lowest level since 2009 and down 0.3 percentage points from the April 2019 World Economic Outlook. While global growth is projected to pick up to 3.4 percent in 2020, that would still be 0.2 percentage points less than predicted in the April assessment.
“The momentum in manufacturing activity, in particular, has weakened substantially, to levels not seen since the global financial crisis,” the IMF report says.
“Rising trade and geopolitical tensions have increased uncertainty about the future of the global trading system and international cooperation more generally, taking a toll on business confidence, investment decisions, and global trade.”
Read also: Govt needs to ‘roll out the carpet’ to lure more investors: ADB
The IMF has drastically cut the world trade volume growth projection to 1.1 percent this year from 3.4 percent forecast in April.
