Indonesia Covid-19: Trade data point to severe economic contraction in Q2, say economists

A ship is seen at a port in Jakarta Port. Indonesia’s economy is expected to contract sharply in the second quarter this year as trade data show that both exports and imports nosedived in May amid a coronavirus-induced global economic slowdown. - The Jakarta Post/ANN

JAKARTA (Jakarta Post/ANN): Indonesia’s economy is expected to contract sharply in the second quarter this year as trade data show that both exports and imports nosedived in May amid a coronavirus-induced global economic slowdown.

Economists on Tuesday (June 16) have warned that falling imports in all goods categories point to lower demand and weaker manufacturing activities as well as investment, which will have a severe impact on the economy. Household spending and investment account for more than 70 per cent of Indonesia’s gross domestic product (GDP).