TEMPO.CO, Jakarta - Bank Mandiri chief economist Andry Asmoro predicts Indonesia’s economic growth throughout 2020 will record between minus 1 to minus 2 percent which is mainly caused by the effects of the global COVID-19 pandemic.
However, he believes that the economic recession looming over Indonesia will not be as bad as neighboring countries.
“The recession experienced by Indonesia will not be as deep as other countries in the same region India, the Philippines, Malaysia, Thailand, and Singapore, or even developed countries in the European continent and the United States,” said Andry in an online discussion on Thursday, September 24.
Andry claims Indonesia’s economic growth in 2020’s first quarter has significantly slowed down to the level of 2.97 percent. Entering the third quarter, it saw improving graphs after COVID-19 large-scale social restrictions (PSBB) were relaxed.
The economist forecasts Indonesia will start to enter a recovery period in 2021 with assumptions that infection rates will slow down, added with the prospect of discovering and producing vaccines to overcome the pandemic.
“We predict the economy will grow to 4.4 percent in 2021,” said Andry.