IMF Projects Indonesia's 2020 Economic Growth at -0.3%

TEMPO.CO, Jakarta - The International Monetary Fund or IMF projects Indonesia's economic growth will experience contraction, with a minus 0.3 percent growth this year. The outlook is written in IMF's June 2020 World Economic Outlook (WEO) released Wednesday, June 24.

However, the IMF estimates Indonesia's economic growth will rebound up to more than 6.1 percent. Compared to other emerging economies, Indonesia's contraction is lower - for example next to Argentina (-9.9 percent), Brazil (-9.1 percent), India (-4.5 percent), Korea (-2.1 percent), Malaysia (-3.8 percent), Mexico (-10.5%), Thailand (-7.7 percent), and the Philippines (-3.8 percent).

In its projections, the IMF said that the world's economic axes, China and the United States, experienced significant differences. The US is estimated to experience an economic contraction of up to 8 percent, while China managed to evade contraction with growth of 1 percent in 2020.

The IMF also projected that the world will face many uncertainties in recovering from the worst recession since the Great Depression, due to the lack of medical solutions to curb the novel Coronavirus transmission.

IMF's Director of Research Gita Gopinath said that good news on Covid-19 vaccines and treatments—coupled with additional policy support—can lead to a faster reboot of economic activities.

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