Minister of Finance Sri Mulyani Indrawati explained the state budget performance conditions until the end of July 2020.
The country’s financial sector has yet to provide signs that could make the national economy move forward until the end of this year.
The former Managing Director of the World Bank even said that the national economy has the potential to be negative throughout 2020.
If so, then Indonesia is officially a recession.
In the first quarter of 2020, the Indonesian economy grew at the level of 2.97% and in the second quarter of 2020, it contracted minus 5.32% due to the Corona pandemic.
Meanwhile, for the third quarter of 2020, he revealed that the economic growth outlook will be in the range of 0% to minus 2%.
This follows the absence of a solid national economic reversal.
With this outlook, Sri Mulyani revealed that national economic growth throughout 2020 will be in the range of minus 1.1% to positive 0.2%.
Sri Mulyani revealed that there are at least two keys that can save the country’s economy from the brink of recession, namely household consumption and investment.
In order to boost household consumption, Sri Mulyani revealed that the acceleration of absorption of government spending will have an impact on the economy in the third quarter of 2020.