Indonesia economy shrinks for fourth straight quarter

6 May, 2021 12:00 AM printer

JAKARTA: Indonesia’s economy shrank for the fourth consecutive quarter in January-March, data showed Wednesday, as the country’s leaders struggle to overcome a recession wrought by the coronavirus pandemic.

The 0.74 percent on-year contraction was a big improvement on the 2.19 percent in the previous three months but slightly worse than expected, with the tourism sector among the worst-affected industries, reports AFP.

However, statistics bureau Suhariyanto told reporters: “It is still negative, but it is much better compared to the previous quarters which shows that the trend of the economic recovery is on track.”

On a quarterly basis, Southeast Asia’s biggest economy contracted 0.96 percent.

Last year the economy shrunk 2.07 percent as it entered its first recession since 1999 during the Asian financial crisis.

The government has unveiled more than $48 billion in stimulus to help offset the impact of the virus, which forced the government to impose wide-ranging, economically-painful containment restrictions.