Indonesia’s economy shrank by 2.19% in the fourth quarter (Q4) of 2020, after a 3.49% fall in the previous period. It was the third straight quarter of contraction amid the coronavirus pandemic. Household consumption fell 3.61% (vs -4.05% in Q3) while fixed investment contracted 6.15% (vs -6.48% in Q3) and external demand contributed negatively to the GDP, as both exports and imports declined. Meanwhile, government spending expanded 1.76% (vs 9.76% in Q3).
On the production side, output contracted mainly for mining (-1.20% vs -4.28%), manufacturing (-3.14% vs -4.34%), construction (-5.67% vs -4.52%), wholesale trade, retail (-3.64% vs -5.05%), transportation and warehouse (-13.42% vs -16.71%). By contrast, output grew for communication (10.91% vs 10.72%). For the 2020 full year, the GDP contracted by 2.07%, the steepest decline since the 1998 Asian financial crisis, reversing from a 5.02% growth in 2019.