BI Reveals Global Economic Growth In The Range Of 3 Percent

Photo: Aris Nurjani/VOI

JAKARTA - Bank Indonesia (BI) expressed it amidst the uncertainty of the financial market which is still high. Global economic growth in 2024 is predicted to reach 3 percent.

BI Governor Perry Warjiyo said the momentum of global economic recovery was continuing, amidst the uncertainty of the financial market which was still high.

"Global economic growth in 2024 is predicted to reach 3.0 percent, and it is still necessary to strengthen the policy response to mitigate the negative impact of global propagation," he explained at the BI RDG press conference, Wednesday, March 20, 2024.

According to Perry, the economic growth of the United States (US) is still strong, supported by domestic demand, as well as India also grows better supported by government and private investment.

Meanwhile, China's economic prospects are expected to remain unstrong, although slightly higher than previous projections driven by a series of increasing fiscal stimulus by the government.

In addition, according to Perry, commodity prices have increased, driven by increased transportation costs due to geopolitical tensions and tight supply due to weather factors.

"These various developments have resulted in a decline in the rate of global inflation being restrained by inflation in developed countries which is still above its target, the Fed Funds Rate is estimated to only decline in the second semester of 2024," he explained.

According to Perry, global financial market uncertainty is still high, as the yield of the US Treasury increases in line with the long-term risk premium for inflation which is still above market forecasts.