ADB Lowers Indonesia's Economic Growth Projection to 4.1% in 2021

The Asian Development Bank (ADB) has lowered its projection for Indonesia's economic growth in 2021. The national GDP, previously estimated to grow by 4.5% in the April 2021 outlook, has been revised down to 4.1% in the July 2021 outlook.

The downward revision is influenced by the implementation of the Emergency Community Activity Restrictions (PPKM) to curb the spread of the Covid-19 coronavirus. As a result, Indonesia's economic recovery, which had been underway since the third quarter of 2020, has been hampered.

The ADB also cut growth projections for several other Southeast Asian countries. For example, Vietnam's economic growth, previously projected at 6.7%, has been revised down to 5.8%. Similarly, Malaysia's projection was lowered from 6% to 5.5%, and Thailand's from 3% to 2%.

Despite this, the Philippines' economy is still expected to grow by 4.5% this year. Furthermore, Singapore's economic growth is projected to increase from 6% to 6.3%.

Overall, the ADB has lowered its projection for Southeast Asia's economic growth from 4.4% to 4%. However, the region's economic growth is predicted to increase by 0.1% to 5.2% in 2022.