Padang (ANTARA) - Bank Indonesia (BI) of W Sumatra estimates that it will take up to five months to recover the economy of the province affected by the COVID-19 pandemic.
"If previously estimated that the W Sumatra 2020 economy would grow at 4.97 percent, but because the pandemic it is down to a range of 2.3 to 2.7 percent this year," said Head of West Sumatra's BI Wahyu Purnama in Padang on Thursday.
According to him the figure of 2.3 to 2.7 percent was realized if this outbreak could end in June and there had been economic activity in July 2020.
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"However, if the Large-scale social restrictions (PSBB) implementation is longer, the W Sumatra economy will decline even more," he added.
He saw that currently the sectors that were still growing were agriculture, information and communication trade, while the transportation sector and manufacturing industry fell.
W Sumatra's economic recovery will depend on when the PSBB ends and after that the economy can grow again.
The fastest growing sectors after restrictions are transportation and trade.
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Related to the economic stimulus provided by the government, it really depends on the availability of funds in the regional budget.
One of them is government activities ranging from investment to infrastructure development, he said.
Moreover, many private sectors also depends on government spending because their business depend on the government budget.
While referring to W Sumatra's economic growth rate in the first quarter of 2020 which is at 3.92 percent, it is estimated that in the second quarter of this year it will drop to one percent.
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W Sumatra needs five months to recover economic after being affected by COVID-19 according to BI
BI Head of W Sumatra Wahyu Purnama. (Antara / Ikhwan Wahyudi)
