Indonesian GDP sees record contraction since 1999 for second quarter

Indonesia’s economy saw a record contraction since 1999 in the second quarter as the COVID-19 situation continued to affect consumer demand and economic activity in Southeast Asia’s largest economy.

Data from Statistics Indonesia reported the country’s GDP to have shrunk by 5.32% from April to June year-on-year in contrast to a forecast of a 2.97% contraction by a Reuters poll of economists.

The data showed a broad-based impact from the fallout of the pandemic, with households curbing spending and businesses delaying investments, while exports were also hit by lower global demand and commodity prices.

The data also reported the economy shrinking by 4.19% quarter-on-quarter, on a non-seasonally adjusted basis.