Jakarta, LiputanIslam.com— Coordinating Minister for Economic Affairs Airlangga Hartarto said the economic crisis caused by the coronavirus disease (Covid-19) would only recover in 2022.
“This crisis will not end this year, it will go on till 2021, 2022 for recovery,” Airlangga said on Thursday, June 18.
The economic situation is now worse than the crisis in 2008, which happened due to the subprime mortgage in the United States (US). At the time, the financial sector was the only one hit, and the other sectors were safe.
But, in the current situation, all sectors are hit by the Covid-19 Pandemic, including micro, small and, medium-scale business (UMKM). They are all shrinking.
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“UMKM was safe in the 2008 crisis. If considered, the current crisis is not deeper than in 1998, but it is compared to 2008. All sectors are now going down,” he said.
In this case, Finance Minister Sri Mulyani Indrawati conveys that the economic challenge will be very hard for Indonesia this year. In fact, she has revised the economic growth target from 0.4 percent until 2.3 percent into -0.4 percent until 1 percent.
“Previously, we estimated the upper 2.3 percent. Now, we revise it slightly down to 1 percent,” she stated.
The revision is made considering the economic contraction that will occur in the second quarter of 2020, which is projected to reach -3.1 percent. This economic contraction has struck a number of advanced countries, such as England, Germany, and Japan.
“In developed countries, all countries in the second quarter experienced contractions. Some countries are even in recession such as England, German, Japan, and Malaysia,” she remarked. (sh/cnnindonesia/sindonews)