Sri Mulyani Brings Horror News Returning From Paris: Fragile Economy, Many Countries Can't Survive

Minister of Finance Sri Mulyani (Photo: Instagram @smindrawati)

JAKARTA Minister of Finance (Menkeu) Sri Mulyani revealed that the bright spot for global economic recovery still seems to have to be held back due to various factors. According to him, the world's economic situation cannot be separated from the continuing uncertainty.

"I just returned from Paris, which indeed illustrates that the projected global economic growth is still uncertain in accordance with the predictions issued by international institutions," he said when describing the realization of our APBN, Monday, June 26.

The Minister of Finance explained that the World Bank projected economic growth in 2023 to be 2.1 percent. Meanwhile, the IMF estimates growth of 2.4 percent, and OECD at 2.8 percent.

"That figure is lower than 2022 and before, namely 2021," he said.

The state treasurer said that international trade also showed the most significant weakening to 2.4 percent. This level fell from the previous two years, namely 5.1 percent in 2022 and 10.6 percent in 2021, respectively.

"On the other hand, with the weakening of the economy, global demand is decreasing. Inflation is also expected to decrease, but the level is still much higher than before the pandemic," he stressed.

Furthermore, Sri Mulyani stated that global pressure was also influenced by geopolitical aspects, both happening in Ukraine and ongoing between the world's major countries.

The debt distress in developing and emerging countries as well as in developed countries also hinders economic recovery. Several countries experience fragility, high inflation, and rising interest rates are the factors that erode economic growth," he explained.

For information, Indonesia is included in a country that is able to continue the consistency of growth.

The latest data states that there was an increase in gross domestic product (GDP) by 5 percent in the first quarter of 2023. The score continued the positive results of economic growth which has always been above 5 percent since the first quarter of 2022.

Indonesia was able to maintain growth for six consecutive quarters. In other countries it might be good but then experienced a sharp decline in 2023, especially. So indeed many countries are no longer able to survive in the pressures and turmoil of the world," he said.