YAKARTA (Reuters) – Indonesia’s central bank expects Southeast Asia’s largest economy to recanomate with the influence of the pandemic, a high-ranking official said Monday, with a stable design in coronavirus times that will save a strong uptick.
To pass out to Damayanti, the Bank of Indonesia’s (BI) chief governor, said at the seminar that the world’s fourth-largest-populated counterattack had not yet experienced an increase in infections, underpinning BI’s expectations of a slower-than-expected recovery.
Indonesia outperformed China on Saturday because the rustic with the maximum showed infections in East Asia. On Sunday, the government also reported the largest distribution of COVID-19 deaths, with a total of 86,521 deaths and 4,143 deaths.
BI at birth the pandemic had predicted a V-shaped recovery, since then it has continuously reduced its outlok for gross domestic product.
“With the increase in case trends, there is unlikely to be a 100% reduction (of coronavirus-like restrictions),” he said. “It can be slow and suggests that the economy recanote quickly.”
Last week, BI officials said economic activity was the weakest in April and May, with the biggest GDP contraction expected at the time of a quarter.
Damayanti, who occupies the moment in a larger position at the central bank, said PROFITO for BI for a contraction of 4% to 4.8% at the time one quarter, roughly in line with the government’s forecast for a 4.3% contraction.
“If we want to be defensive, with blockages or brakes on a large scale, the economy will likely get worse,” he said, describing Indonesia’s current scenario as a “survival mode.”
Meanwhile, fears of an extended global slowdown have pushed on emerging market position assets, adding the rupee, while some investors have returned to the safe haven assets, he said. The rupee fell 0.9% on Monday to 14745 per dollar at 04:43 GMT.
BI is committed to helping the economy through bond buying operations and rate cuts, Damayanti said, while committing to be cautious in assessing the influence of those measures on inflation and the rupee.
Earlier this month, President Joo Widodo said the coronavirus outbreak in Indonesia is now expected to peak in August or September.
(Reporting by Gayatri Suroyo and Maikel Jefriando; Editing by Christian Schmollinger and Ed Davies)