Indonesia hits recession for first time in over 20 years

Indonesia's economy fell into recession for the first time since 1998 after contracting for two consecutive quarters, the country's statistics agency said Thursday.

Gross domestic product contracted at an annual rate of 3.49 per cent in the third quarter, said the head of the Central Bureau of Statistics, Suhariyanto. The economy shrank 5.32 per cent in the second quarter.

The economy grew 5.05 per cent on a quarterly basis, Suhariyanto said at a news conference.

Domestic consumption, the main driver of Indonesia's economy, has suffered as a result of the Covid-19 pandemic.

Indonesia has recorded confirmed 421,731 cases of Covid-19, with 14,259 deaths.