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Jakarta Post

Indonesia’s economy could enter recession in Q3: Sri Mulyani

  • Adrian Wail Akhlas

    Jakarta

Jakarta   /   Mon, July 13 2020   /  01:00 am
Minister of Finance Sri Mulyani conveyed the realization of the State Budget (APBN) 2020 in Jakarta, Wednesday (02/19/2020). Minister of Finance said that the government will be aware of the threat of economic slowdown due to the corona outbreak in China in pursuit of the target of basic macroeconomic assumptions in the 2020 state budget. (Antara/Puspa Perwitasari)

Indonesia’s economy could enter a recession in the third quarter as the government moves to accelerate stimulus spending to cushion the economic fallout of the coronavirus pandemic. The country’s gross domestic product (GDP) is expected to contract 3.8 percent in the second quarter and may shrink by a further 1 percent or grow 1.2 percent in the third quarter, said Finance Minister Sri Mulyani Indrawati. Read also: Government guarantees $6.9b in working capital loans for MSMEs If the economy shrinks in the third quarter, it will mark Indonesia’s first recession since the 1998 Asian financial crisis. A recession happens when an economy shrinks in two consecutive quarters. “Indonesia’s economic outlook will now depend on the ability to stimulate recovery after a drastic deterioration in economic activity,” the finance minister told lawma...