Reeling from the COVID-19 slump, Indonesia’s economy shrank for the fourth quarter in a row in the first three months of this year.

The economy shrank 0.7% in the first quarter, compared to the same period in 2020, the Central Bureau of Statistics said Wednesday.

"We're seeing signs of economic recovery," Suhariyanto, head of the statistics bureau, said at a news conference.

"We hope that economic recovery in 2021 will become a reality," he said.

Indonesia's economy suffered its first annual contraction in more than two decades in 2020, shrinking 2.1% compared to the previous year because of the COVID-19 pandemic.

Southeast Asia's largest economy has set its target economic growth for 2021 at between 4.5% and 5.5%, with domestic spending and investment hoped to be the main drivers.