JAKARTA, Aug 25 (Reuters) - Indonesia’s economic recovery was “very fragile” tax revenue data in July showed and could reverse, the country’s finance minister said on Tuesday, warning that the economy faced a struggle to avoid a recession.
Revenues had improved temporarily in June after coronavirus-induced restrictions were eased, but state income from some sectors deteriorated in July, Minister Sri Mulyani Indrawati said, describing this as “a map that shows our economic recovery is very fragile and may reverse.”
Indrawati said for Southeast Asia’s largest economy to post growth of around 0% in the third quarter would “require an extraordinary struggle”. The economy contracted 5.32% on-year in April-June.
“We will see if the trend continues in August, whether we can stay in the zone of near 0% and we can continue to guard against falling into recession,” she said. (Reporting by Maikel Jefriando and Gayatri Suroyo Editing by Ed Davies)
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