Prepare for a recession, do these 4 things for safe financial conditions

JAKARTA, KOMPAS.com – Several countries have now entered the brink of recession, as a result of the Covid-19 pandemic.

Meanwhile, Indonesia is currently preparing for this threat if in the third quarter of 2020 economic growth is still at a negative level.

PT Indo Premier Sekuritas head of marketing Paramita Sari said the main marker of a recession is economic downturn with reduced business and industrial activity.

Also read: Facing the recession, portfolio diversification in solutions

This condition has the potential to turn economic growth negative in two consecutive quarters.

Looking at the second quarter of 2020, Indonesia’s economic growth was minus 5.32 percent.

“However, this optimism remains for the Indonesian economy, which can still grow positively until the end of the year, if in the third quarter the economic growth remains in the positive zone,” said Paramita. Kompas.com, Thursday (03/9/2020).

Despite the looming recession, there are several ways you can support the government’s efforts to safeguard the economy in the future.

Also Read: Can Indonesia Experience a Recession in 2020?

Here are 4 tips you can follow to prepare for the threat of a recession.

Thrifty doesn’t mean being stingy. Saving money in the midst of the Covid-19 pandemic, which is not yet sure when it will end, is very important to face economic conditions that may be even more difficult than the current ones.

So some nonessential finance positions really need to be put off first and focus on basic needs.

It is also important to meet basic needs independently, for example, you can cook yourself for daily food needs.