International Monetary Fund (IMF) cut Indonesia’ economic growth projection in 2021 to 4.8 Percent and 6.0 percent. Earlier, the agency sees Indonesian economy could grow 6.1 percent and contraction 1.5 percent in this year. The Fund said, the Indonesian economy has rebounded in the second half of 2020, and the recovery is expected to accelerate in 2021 and 2022.
“The outlook is positive. Building on the economic rebound in the second half of 2020, real GDP is projected to expand by 4.8 percent in 2021 and 6 percent in 2022, led by strong policy support measures, including COVID-19 vaccine distribution plans as well as improved global economic and financial conditions,” wrote the statement.
It said, the uncertainty surrounding the growth outlook is larger than usual. Early widespread vaccination is an upside risk, while delays could lead to a more protracted pandemic, a downside risk. The macro-financial fallout of the pandemic and economic downturn could be larger-than-expected, and credit conditions could be slow to improve.
