Minister of Finance (Menkeu) Sri Mulyani said that global economic conditions still face tough challenges, especially for developed countries such as America, China, to the European region.
According to him, this year's economic growth will be slower than 2022 and also 2021 when there is a peak concern about the COVID-19 pandemic.
"The trend of weakening the economy in developed countries will continue and the possibility of a recession is still there," he said through a virtual channel on Wednesday, February 22.
The Minister of Finance explained that this condition had an effect on the formation of commodity prices. He said the global commodity index rose 15 percent year on year (yoy) with a highest point of 33 percent in May 2022.
"Inflation in several developed countries has touched its highest level in the last four decades," he continued.
The Minister of Finance added that the dollar index still strengthens to 8.2 percent yoy in line with high inflation and the increase in the feed fund rate, which is believed to have not decreased in 2023.
"The 2023 prospects are still overshadowed by various risks, such as geopolitical factors, relatively narrow fiscal space, high interest rates, and maintaining pressure on the property sector in China," he said.
Meanwhile, Indonesia is said to be one of the countries with good resilience, because it was able to achieve 5.3 percent economic growth last year. This is in contrast to the world growth rate which is estimated to be only 3.4 percent in the same period.
"Indonesia's growth is one of the best in 2022. This is the basis that we can be optimistic because from an economic perspective there is resilience from a very strong recovery momentum," he said.
For information, the government targets economic growth this year to be 4.5 percent to 5.2 percent.
Meanwhile, Bank Indonesia had corrected the growth rate from 4.9 percent to 5.1 percent with the consideration that there were positive excesses from China's economic opening after the easing of the zero covid policy policy.
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