Indonesia’s central bank expects a U-shaped recovery for Southeast Asia’s largest economy from the impact of the coronavirus pandemic, its senior deputy governor said in an online seminar on Monday.
The economy likely shrunk between 4% to 4.8% in the second quarter “with a U-shaped recovery because we haven’t seen the peak of cases in Indonesia”, said Bank Indonesia’s Deputy Governor Destry Damayanti.
A gradual reopening of the economy would make it harder to see a strong rebound, thus the recovery would take longer than initially expected, she said, adding that fears of prolonged global downturn has put pressure on emerging market assets.