ILLUSTRATION. Opinion Illustration – Judging by Indicators of Economic Recession
Reporter: Virdita Rizki Ratriani | Editor: Virdita ratriani
KONTAN.CO.ID – The countries of the world are now entering the brink of recession one by one. Most recently, Australia officially experienced a recession after its economy contracted by 6.3% year on year (YoY) in the second quarter of 2020.
This is the first Australian recession in 30 years. Technically, an economic recession is when the economy grows in two consecutive quarters of negative growth on an annual basis.
Meanwhile, Minister of Finance (Menkeu) Sri Mulyani Indrawati indicated that the Indonesian economy would enter the abyss of recession in the third quarter of 2020.
This is because the national economy is -5.32% in the second quarter of 2020. So, if Indonesia’s economic growth in the third quarter is negative, then Indonesia is officially a recession.
“In the third quarter of 2020, our economy was still experiencing negative growth, even in the fourth quarter of 2020 it was still in a zone slightly below neutral,” Sri Mulyani was quoted as saying. Kontan.co.id, Thursday (3/9/2020).
So, which countries are already in recession?
Also Read: Indonesia is on the verge of an economic recession in 2020, what is a recession?
List of recession countries
Summarized by Kontan.co.id, here is a list of countries that are already in recession:
Quoted from Kontan.co.id, 17 August 2020, Singapore’s economy went into recession after contraction in the second quarter of 2020.
Gross domestic product (GDP) plunged a record 41.2% in the three months ended March, on a quarter-on-quarter annual basis, preliminary data from the Ministry of Commerce and Industry.
On a year-on-year basis, GDP dipped 12.6% compared to the economist’s estimate of 10.5% GDP.
This GDP decline is the second time in a row for Singapore. In Q1 2020, Singapore’s economy declined by 0.3% year-on-year (yoy) and 3.3% quarter-on-quarter. It meets the definition for a technical recession.
Also Read: In view of the 1998 RI economic recession, the rupiah exchange rate weakened almost 8 times
2. South Korea
The South Korean economy recorded its first technical recession since 2003 in the June quarter. Activity restrictions due to the corona virus pandemic are pressing down on economic activity and global demand.
Launch Reuters, South Korea’s central bank said, South Korea’s Gross Domestic Product (GDP) level decreased by a seasonally adjusted 3.3% in the June quarter. In comparison, South Korea’s GDP declined 1.3% in the previous quarter.
Also Read: The Minister of Finance and the former Minister of Finance both indicated that the Indonesian economy would be in recession