Illustrative photo (Photo: dailynewssegypt.com)
(VNA) - Indonesia’s gross domestic product (GDP) is projected to grow by only 4.9 percent in 2019, 0.4 percent lower than the set target, Moody’s Investor Service has said.
According to Moody’s, the Southeast Asian nation’s GDP will further decline to 4.7 percent in 2020, and is expected to slightly recover to 4.8 percent in 2021.
Moody’s managing director and chief credit officer Michael Taylor said the decline in commodity prices and the US-China trade war have caused negative effects on Indonesia’s economy.
According to Moody’s analyst Tengfu Li, the decline in commodity prices correlated closely to the banking sector, making it one of the key risks to Indonesian banks.
Meanwhile, Moody’s vice president and senior credit officer Jacintha Poh said the GDP slowdown as well as weak commodity prices — especially for palm oil and coal — will also affect the earnings of many corporates in Indonesia.
According to official statistics of Indonesia, the country’s GDP increased by 5 percent in the third quarter of 2019./.