Stimulus Successfully Reduced the Negative Impact of the Pandemic on the National Macroeconomy
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The Covid-19 pandemic has significantly impacted Indonesia's macroeconomy. The University of Indonesia's Institute for Economic and Community Research (LPEM UI) estimates that Covid-19 will cause a change in the Gross Domestic Product (GDP) of -6.49 percent compared to a business-as-usual (BAU) scenario.
According to LPEM UI, fiscal stimulus will mitigate the impact of Covid-19. The GDP change would be only -5.07% compared to BAU. The stimulus is currently considered relatively effective in hindering the negative impact on macroeconomic sectors such as welfare, consumption, investment, and employment.
Not only GDP, but significant changes were also observed in several sectors even with the stimulus applied. The stimulus managed to reduce the more severe impact on welfare (-1.61 percent), consumption (-2.32 percent), investment (-2.21 percent), employment (-2.09 percent), and inflation (-0.6 percent).
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."
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