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Jakarta Post

World Bank forecasts even bigger GDP drop

  • Adrian Wail Akhlas

    Jakarta

Jakarta   /   Wed, September 30 2020   /  01:00 am
Residents distribute staple food to their neighbors in Tengah subdistrict, Kramat Jati, East Jakarta on Sept. 25. The Jakarta administration is distributing grocery packages to low-income families as the administration reinstates the large-scale social restrictions (PSBB). JP/PJ Leo(JP/P.J. Leo)

Indonesia’s economy could contract more than expected if the coronavirus pandemic remains uncontrolled, as Southeast Asia’s largest economy faces an “uneven and volatile” economic recovery, the World Bank says. The Washington, DC-based development bank now projects Indonesia’s economy to contract by 1.6 percent this year under the baseline scenario; in June it had projected zero growth. However, the economy may contract even by 2 percent if the country fails to control the pandemic, according to the World Bank’s East Asia and Pacific Economic Update published on Tuesday. “It is in countries like Indonesia and the Philippines that recovery will be much slower, because they have not succeeded in controlling the disease,” World Bank East Asia Pacific chief economist Aaditya Mattoo said during a virtual press briefing on Tuesday. &ldqu...