Indonesia’s economy will expand by 4.4 percent in 2021, the World Bank forecast in its January Global Economic Prospect report.

The figure is 0.4 percentage point lower than the WB’s projection in June 2020.

Meanwhile, the International Monetary Fund (IMF) cut Indonesia’ economic growth projection in 2021 to 4.8 percent, down 1.3 percentage point compared to its forecast last October.

According to world economic exports, the reason for the adjustment of both WB and IMF is that the COVID-19 pandemic continues posing risks for the local economy, just like for the global economy.

The number of infections in Indonesia has exceeded one million, and does not show signs of decline.

The country’s application of social distancing measures to contain the spread of the coronavirus will continue hindering economic activities, at least in the first quarter of 2021.

Source: VNA