Delta Variant Makes Apes, World Bank Cuts Economic Growth Of RI And ASEAN Countries

Illustration (Photo: Doc. Antara)

JAKARTA - The international financial institution World Bank (World Bank) has readjusted Indonesia's economic growth projections for 2021. This is known from Bank Mandiri's official report released today.

"The World Bank has lowered its projection for Indonesia's economic growth this year to 3.7 percent," said Bank Mandiri on Thursday, September 30.

This latest prediction fell 70 basis points from the previous estimate.

"This figure is lower than the previous projection in April 2021 which was 4.4 percent," said Bank Mandiri.

Meanwhile, the cuts were based on the condition of the Indonesian economy, which was under pressure due to restrictions on mobility in line with the increase in daily cases of COVID-19 at the beginning of the third quarter of 2021.

"This correction was made taking into account the impact of the 2nd wave of COVID-19 caused by the spread of the Delta variant," the report said.

Not only Indonesia experienced a decline, the World Bank also cut economic growth targets for several other countries in Southeast Asia in 2021.

These countries include Vietnam to 4.8 percent from 6.6 percent, the Philippines to 4.3 percent from 6.6 percent, Malaysia to 3.3 percent from 6 percent, Cambodia to 2.2 percent from 4 percent, and Thailand to 1 percent from 3.4 percent.

Meanwhile, the government through the Ministry of Finance estimates that Indonesia's gross domestic product (GDP) growth in the third quarter of 2021 will be in the range of 4-5 percent.

As for the whole year, the state still believes that the growth range will remain within the initial estimate of 3.7 percent to 4.5 percent.

For information, economic deteriorating conditions occurred in Southeast Asia after the COVID-19 delta variant struck at the beginning of the second half of this year. In fact, daily cases in Indonesia had penetrated the figure above 50,000 per day.

"The successful handling of COVID-19 cases and the acceleration of the vaccination program, as well as various economic stimulus policies will encourage the national economic recovery," said Bank Mandiri when closing its report.