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Southeast Asia’s Worst Outbreak Hammers Indonesia’s Economy

  • GDP fell 2.19% in fourth quarter, near -2.3% survey estimate
  • Government boosts stimulus as it eyes 5% GDP growth this year
Closed stores in Bali, on Jan. 22.

Closed stores in Bali, on Jan. 22.

Photographer: Putu Sayoga/Bloomberg
Updated on

Indonesia’s economy capped its first annual contraction since the 1998 Asian financial crisis as the region’s worst coronavirus outbreak continued to sap activity through the fourth quarter.

Gross domestic product in the final three months of 2020 fell by 2.19% from a year earlier, the statistics bureau said Friday. The median estimate in a Bloomberg survey was for a contraction of 2.3%. For the full year, GDP slipped 2.07%, in line with a 2.1% drop economists forecast.