Sri Mulyani Regrets Russian-Ukrainian Military Actions At A Time When The European Economy Begins To Grow

JAKARTA - The Minister of Finance (Menkeu) Sri Mulyani admitted that she continues to observe the latest developments in Eastern Europe, particularly related to military tensions between Russia and Ukraine. According to him, the current conditions can certainly have a negative impact on the world economy, especially from a geopolitical perspective.

In fact, two parties who are believed to be at the heart of the problem, namely Russia and the United States (US) are experiencing increased economic activity.

Based on the data shared by the Minister of Finance, it can be seen that manufacturing activity in Europe is at the level of 58.7 in line with the easing of issues of disruption to the supply of raw materials (supply). Meanwhile, the US, despite experiencing a slowdown, remained in the expansion category with a manufacturing level of 55.5.

Just so you know, the two indicators in the region are higher than the overall global level of 53.2.

"America and Europe continue to show expansion in terms of manufacturing, although the risks, especially with the geopolitical escalation and the issue of military tension in Ukraine, will affect conditions, especially in Europe," she said via online channels earlier this week.

The Minister of Finance added that other implications of the worsening situation in Europe are believed to have an impact on the higher prices of a number of world's leading commodities.

“In terms of commodity prices, the increase still occurred in January. Coal even increased again. Likewise with gas and crude oil. These are the three energy commodities that are heavily influenced by the current geopolitical conditions," she said.

For information, in the first two months of this year alone (year-to-date/ytd) world crude oil prices have shot up 23.8 percent to 100 US dollars per barrel. Likewise with coal and which have increased by 37 percent, 37 percent and 24 percent y-t-d, respectively.