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IMF lowers Indonesia’s GDP growth outlook for 2021
The International Monetary Fund's latest outlook for Indonesia forecasts GDP growth of 4.3 percent this year, lower than the government's targeted range of between 4.5 percent and 5.3 percent.
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People arrive for the IMF/World Bank Annual Fall Meetings Plenary Session in Washington, DC, on October 18, 2019. (AFP/Andrew Caballero Reynolds)
T
he International Monetary Fund (IMF) has lowered its 2021 growth projection for Indonesia and is far less optimistic than the government about the economic recovery as the country faces setbacks with its COVID-19 vaccination program.
In its April outlook, the IMF downgraded Indonesia’s gross domestic product (GDP) growth projection by 0.5 percentage points to 4.3 percent for this year. That figure is lower than the government’s projection, which assumes GDP growth between 4.5 percent and 5.3 percent.
Josua Pardede, an economist at publicly-listed Bank Permata, said the IMF’s downgraded outlook was in line with the country’s slow vaccination rollout compared to other emerging economies, like India and Turkey.
“With the slow distribution of vaccines, economic activities in the majority of sectors cannot return to normal, which depresses employment rates and keeps people’s purchasing power low,” Josua told The Jakarta Post via text message on Friday.
Around 9.7 million Indonesians have received their first jab and 4.9 million have been fully vaccinated against the virus as of Friday, according to Health Ministry data. But Indonesia is also facing shipment delays and uncertainty over millions of AstraZeneca doses.
Read also: Indonesian government promises big, then falters in vaccine procurement
