JAKARTA, KOMPAS.com – Indonesia’s Central Statistics Agency (BPS) has announced that the country’s gross domestic product (GDP) in the third quarter of 2020 contracted 3.49 percent year on year as the Covid-19 pandemic battered the economy.
The economic contraction in the third quarter was less severe than in the previous quarter when Indonesia saw its GDP contract 5.32 percent.
“With various events in the third quarter of 2020, the Indonesian economy if we compare the GDP’s constant prices with the third quarter of 2019, the economy contracted by 3.49 percent,” said Head of BPS Suhariyanto in a virtual press conference on November 5.
Suhariyanto said that the Indonesian economy in the third quarter was valued at 3,894 trillion rupiahs ($270 billion) based on current prices, while GDP at constant prices of 2010 was at 2,720.6 trillion rupiahs ($189 billion).
Based on the expenditure on an annual basis (year on year), all components have contracted, including household consumption — the economy’s main growth engine — showed the deepest decline at four percent.
Besides Indonesia, other countries that have suffered economic recession include the US, Singapore, South Korea, Australia, the EU, and Hong Kong.
The media reported that governments around the world are implementing policies to contain the spread of the Covid-19 pandemic, which has triggered a global recession.
This is because social and economic activities were halted following the implementation of social restrictions or lockdowns in almost all countries.
The International Monetary Fund (IMF) projected the global economic growth to contract by up to 4.4 percent.
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