America, Europe Until Next Year's China Bakalan Suram, What Is The Fate Of Our Exports?

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The monetary authority of Bank Indonesia (BI) stated that after improving in the 2022 period, global economic growth in 2023 is expected to be lower than previously estimated.

BI Governor Perry Warjiyo revealed that the projection has the potential to even be accompanied by recession risks in several countries.

"Revisions and downs of economic growth occur in a number of developed countries, especially the United States (US) and Europe, and also in China," he said when holding a press conference on Thursday, October 20.

According to Perry, the global economic slowdown was affected by continued geopolitical tensions that triggered economic fragmentation, trade and investment, as well as the impact of aggressive tightening monetary policy.

"Global economic growth has slowed down accompanied by high inflationary pressures and increased uncertainty in global financial markets," he added.

Perry added that the impact of the propagation of global economic fragmentation is also expected to cause economic slowdown in emerging markets.

"This also causes continued supply chain disruptions," he said.

To note, the regions of the United States, Europe, and China are some of the main destinations for marketing Indonesian products.

Data from the Central Statistics Agency (BPS) shows that signs of a decline in exports occurred last September with a realization of US$24.8 billion. This figure fell 10.9 percent when compared to the August book which was worth US$27.8 billion.

Meanwhile, the United States is one of the export destination countries that experienced the largest decline with minus 472.3 million dollars in September compared to August.

However, the performance of the Indonesian trade balance until last month still recorded positive results with a surplus of 4.99 billion US dollars. The score extends the surplus achievements that have occurred since May 2020.