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06 August 2020

GDP 2Q20 - Darkest before the dawn

GDP growth contracted by 5.32% YoY in 2Q20, the weakest since 1999 and deeper than market estimates of -4.7%YoY. The negative growth in 2Q20 was mainly due to contraction in consumption and investment by 5.73% & 8.61% YoY, largely due to the pandemic measures and PSBB policy. On the other hand, Net-export still recorded a positive growth due to higher contraction in imports vis-a-vis exports.

On the production side: the wholesale trade, manufacturing and transportation & accommodation were the most hit sectors (see table below). Meanwhile, the Information & Communication continued to accelerate, reaching 10.9% YoY in 2Q20 (vs. 9.6% in 1Q20).