Sri Mulyani At The G20 Forum: The Global Economy Is Recovering But Uneven, This Is A Common Challenge

JAKARTA - Minister of Finance, Sri Mulyani Indrawati, stated that the global economy continues to show recovery. According to the Minister of Finance, although this positive signal continues to strengthen, in the recovery process several factors affect the pace.

"These include higher food and energy prices, potential interest rate hikes, the threat of new COVID-19 variants, supply chain disruptions, natural disasters due to climate change, and rising geopolitical tensions", she said at the opening of the 1st Finance Ministers and Central Bank Governors (FMCBG) G20, Thursday, 17 February.

The Minister of Finance explained that world economic growth in 2020 will experience a contraction of minus 3.3 percent. Meanwhile, the IMF projects that the global economy will grow by 5.9 percent in 2021. Although it will then be corrected to 4.4 percent in the 2022 period.

"As we have all witnessed, the global economy has recovered but what is certain is that this recovery process is uneven and not easy", she said.

Furthermore, the state treasurer said the emergence of a new variant of omicron also contributed to increasing uncertainty in the global economy.

In addition, differences in the capacity to cope with the COVID-19 pandemic, including the realization of vaccinations in various countries, are the main factors causing uneven recovery.

"These factors will, of course, shape the future global economic landscape", she stressed.

Meanwhile, the implementation of the first G20 Presidency in Indonesia, which was held in the midst of the current pandemic, was considered full of challenges.

She said the G20 forum was Indonesia's commitment to synergize and collaborate with countries to overcome global health challenges. This effort is expected to help countries manage the impact of COVID-19 and other new variants that may emerge as well as manage the economic and financial impact of the pandemic and increase access to equitable vaccines.

"This is also to expand and strengthen the global recovery process and to ensure we recover together and recover stronger", closed the Minister of Finance, Sri Mulyani.