ADB Cuts Indonesia's Growth Outlook to 3.5%
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22 September 2021 19:35 WIB
TEMPO.CO, Jakarta - The Asian Development Bank (ADB) lowered its projection for Indonesia's 2021 economic growth. The ADB's initial outlook in April was 4.5 percent (yoy), and it is now corrected to 3.5 percent (yoy).
"Recoveries will continue but at a more moderate pace at a level of 3.5 percent compared to the 4.5 percent projected last April," ADB's Senior Country Economist Henry Ma said at the ASIAN Development Outlook 2021 event in Jakarta, Wednesday, September 22.
The ADB also lowered its prediction for Indonesia's economic growth for 2022, from the previous 5.0 percent (yoy) to 4.8 percent (yoy).
Henry said there are several aspects behind ADB's outlook correction. The first is the actual rate of economic growth in the second quarter of 2021, which was 7.07 percent—lower than expected.
The second aspect is the tightening of mobility restrictions in the third quarter of 2021, which pressed down economic indicators such as retail and vehicle sales, consumer confidence and the Manufacturing Index.
The third aspect is the slowdown in various countries due to the emergence of new Covid-19 variants and case spikes, especially in developed nations like the United States. There are also financial pressures in the global economy as well as contraction in the services sector.
Read: ADB Predicts Indonesia's Economic Growth at Around 4%
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