Indonesia Economic Prospects, June 2021 : Boosting the Recovery

COVID-19 (coronavirus) has taken a heavy economic and human toll globally and in Indonesia. According to official statistics, over 3.8 million people have died from COVID as of May 2021. The global economy experienced one of the most severe recessions, shrinking by 3.5 percent in 2020 compared to 1....

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Main Author:	World Bank
Format:	Report
Published:	World Bank, Washington, DC 2021
Subjects:	ECONOMIC GROWTH ECONOMIC RECOVERY CORONAVIRUS COVID-19 PANDEMIC IMPACT PANDEMIC RESPONSE INCLUSIVE GROWTH MIDDLE CLASS FEMALE ENTREPRENEURS FEMALE LABOR FORCE PARTICIPATION GENDER LABOR MARKET SOCIAL ASSISTANCE FISCAL TRENDS ECONOMIC OUTLOOK
Online Access:	http://hdl.handle.net/10986/35762

id	okr-10986-35762
recordtype	oai_dc
spelling	okr-10986-357622021-06-22T13:35:45Z Indonesia Economic Prospects, June 2021 : Boosting the Recovery World Bank ECONOMIC GROWTH ECONOMIC RECOVERY CORONAVIRUS COVID-19 PANDEMIC IMPACT PANDEMIC RESPONSE INCLUSIVE GROWTH MIDDLE CLASS FEMALE ENTREPRENEURS FEMALE LABOR FORCE PARTICIPATION GENDER LABOR MARKET SOCIAL ASSISTANCE FISCAL TRENDS ECONOMIC OUTLOOK COVID-19 (coronavirus) has taken a heavy economic and human toll globally and in Indonesia. According to official statistics, over 3.8 million people have died from COVID as of May 2021. The global economy experienced one of the most severe recessions, shrinking by 3.5 percent in 2020 compared to 1.7 percent in 2009 during the global financial crisis. The recession in Indonesia (-2.1 percent) was milder than among Emerging Markets and Developing Economies, EMDEs (-4.3 percent excluding China). Small and medium-sized firms and businesses in contact-intensive services sectors were severely affected. About 1.8 million Indonesians became unemployed between February 2020 and 2021 and another 3.2 million people exited the labour force. Three hundred thousand fewer youth entered the labour market. About 2.8 million people have fallen into poverty as of September 2020 with the government’s social assistance program mitigating a potentially worse outcome. Indonesia's recovery has been relatively gradual until the first quarter of 2021 but has accelerated more recently. Indonesia’s recovery gap – the difference between real GDP and its pre-crisis trend – narrowed from -7.5 to -7.1 percent between Q2 and Q4 2020. By comparison, the average 'recovery gap' among regional and G20 peers shrank from -13.6 to -5.1 percent. The recovery gap remained elevated at -7.9 percent during the first quarter this year. Consumption and investment growth have been subdued due to the still weak labor market and high uncertainty while trade has recovered more strongly. The recovery gap in contact-intensive services sectors, such as transport and accommodation, has also been elevated compared to manufacturing industries due to social distancing and stronger external demand in manufacturing. But retail sales increased by 11 percent between March and April while the manufacturing continued to expand suggesting a stronger rebound during the second quarter. 2021-06-16T22:42:46Z 2021-06-16T22:42:46Z 2021-06-16 Report http://hdl.handle.net/10986/35762 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Economic Updates and Modeling East Asia and Pacific Indonesia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	ECONOMIC GROWTH ECONOMIC RECOVERY CORONAVIRUS COVID-19 PANDEMIC IMPACT PANDEMIC RESPONSE INCLUSIVE GROWTH MIDDLE CLASS FEMALE ENTREPRENEURS FEMALE LABOR FORCE PARTICIPATION GENDER LABOR MARKET SOCIAL ASSISTANCE FISCAL TRENDS ECONOMIC OUTLOOK
spellingShingle	ECONOMIC GROWTH ECONOMIC RECOVERY CORONAVIRUS COVID-19 PANDEMIC IMPACT PANDEMIC RESPONSE INCLUSIVE GROWTH MIDDLE CLASS FEMALE ENTREPRENEURS FEMALE LABOR FORCE PARTICIPATION GENDER LABOR MARKET SOCIAL ASSISTANCE FISCAL TRENDS ECONOMIC OUTLOOK World Bank Indonesia Economic Prospects, June 2021 : Boosting the Recovery
geographic_facet	East Asia and Pacific Indonesia
description	COVID-19 (coronavirus) has taken a heavy economic and human toll globally and in Indonesia. According to official statistics, over 3.8 million people have died from COVID as of May 2021. The global economy experienced one of the most severe recessions, shrinking by 3.5 percent in 2020 compared to 1.7 percent in 2009 during the global financial crisis. The recession in Indonesia (-2.1 percent) was milder than among Emerging Markets and Developing Economies, EMDEs (-4.3 percent excluding China). Small and medium-sized firms and businesses in contact-intensive services sectors were severely affected. About 1.8 million Indonesians became unemployed between February 2020 and 2021 and another 3.2 million people exited the labour force. Three hundred thousand fewer youth entered the labour market. About 2.8 million people have fallen into poverty as of September 2020 with the government’s social assistance program mitigating a potentially worse outcome. Indonesia's recovery has been relatively gradual until the first quarter of 2021 but has accelerated more recently. Indonesia’s recovery gap – the difference between real GDP and its pre-crisis trend – narrowed from -7.5 to -7.1 percent between Q2 and Q4 2020. By comparison, the average 'recovery gap' among regional and G20 peers shrank from -13.6 to -5.1 percent. The recovery gap remained elevated at -7.9 percent during the first quarter this year. Consumption and investment growth have been subdued due to the still weak labor market and high uncertainty while trade has recovered more strongly. The recovery gap in contact-intensive services sectors, such as transport and accommodation, has also been elevated compared to manufacturing industries due to social distancing and stronger external demand in manufacturing. But retail sales increased by 11 percent between March and April while the manufacturing continued to expand suggesting a stronger rebound during the second quarter.
format	Report
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Indonesia Economic Prospects, June 2021 : Boosting the Recovery
title_short	Indonesia Economic Prospects, June 2021 : Boosting the Recovery
title_full	Indonesia Economic Prospects, June 2021 : Boosting the Recovery
title_fullStr	Indonesia Economic Prospects, June 2021 : Boosting the Recovery
title_full_unstemmed	Indonesia Economic Prospects, June 2021 : Boosting the Recovery
title_sort	indonesia economic prospects, june 2021 : boosting the recovery
publisher	World Bank, Washington, DC
publishDate	2021
url	http://hdl.handle.net/10986/35762
_version_	1764483723682643968

Indonesia Economic Prospects, June 2021 : Boosting the Recovery

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