Indonesia predicts U-shaped economic recovery from pandemic

JAKARTA, July 20 (Reuters) - Indonesia’s central bank expects a U-shaped recovery for Southeast Asia’s largest economy from the impact of the coronavirus pandemic, its senior deputy governor said in an online seminar on Monday.

The economy likely shrunk between 4% to 4.8% in the second quarter “with a U-shaped recovery because we haven’t seen the peak of cases in Indonesia”, said Bank Indonesia’s Deputy Governor Destry Damayanti.

A gradual reopening of the economy would make it harder to see a strong rebound, thus the recovery would take longer than initially expected, she said, adding that fears of prolonged global downturn has put pressure on emerging market assets.

Reporting by Gayatri Suroyo and Maikel Jefriando; Editing by Christian Schmollinger