BI Boss Estimates Global Economy To Grow 3.2 Percent In 2024

Press Conference of the Board of Governors Meeting (RDG) of Bank Indonesia (BI). (Photo: Aris Nurjani/VOI)

JAKARTA - Bank Indonesia (BI) expressed its uncertainty that the global financial market will remain high amid the stronger world economic prospects.

Therefore, BI Governor Perry Warjiyo said that global economic growth in 2024 is predicted to reach 3.2 percent, higher than the initial forecast, especially betterning the growth of India and China.

In addition, Perry said, the eaconomics of the United States (US) grew strongly supported by domestic demand improvements and increased exports with the slow decline in US inflation.

"This condition encourages the Fed Fund Rate (FFR) to be predicted to only decline by the end of 2024," he explained at a press conference, Thursday, June 20.

Meanwhile, the European Central Bank (ECB) has lowered its monetary policy interest rate faster in line with lower inflationary pressures.

Perry conveyed that the divergence of monetary policy for developed countries and the high geopolitical tensions caused global financial market uncertainty to remain high.

According to Perry, with these various developments, and with the high yield of the US treasury, the strengthening of the US dollar exchange rate has increased the pressure on the weakening of the exchange rate of various world currencies and withheld the flow of foreign capital into developing countries.

"This high global financial market uncertainty requires a strong policy response to mitigate the negative impact of this global uncertainty on the economy in developing countries, including Indonesia," he said.