The Global Economy Is Really Substantiated, The Fact Of "Restoring" Has Just Been Revealed By Bank Indonesia

Illustration (Photo: Doc. Antara)

JAKARTA Bank Indonesia (BI) chose to be conservative in view of the expectations of global economic growth in the future. This was revealed from the presentation of the Governor of BI in a press conference today after holding a Board of Governors Meeting.

It is stated that the world economy risks growing lower than expected. The reason is, the situation that is developing cannot be separated from various pressures, such as high inflation and the uncertainty of global financial markets.

"The decline in economic growth is expected to be greater in 2023, especially in the United States (US), Europe, and China, even accompanied by the risk of a recession in a number of developed countries," he said on Thursday, September 22.

According to Perry, the volume of world trade will also remain low. He said, in the midst of an economic slowdown, supply disruption increased, pushing the price of energy to survive high.

Then, global inflationary pressures are getting higher along with geopolitical tensions, ongoing protectionism policies, as well as heatwave phenomena in several countries.

"Inflation in developed countries and emerging markets has increased high, even core inflation is in an increasing trend, encouraging central banks in many countries to continue aggressive monetary policies," he said.

Perry added that the latest signal was shown by the higher Fed Fund Rate increase and is expected to continue to increase.

"This development encourages the stronger the US dollar currency and the higher uncertainty in the global financial market, thus disrupting the flow of portfolio investments and the pressure of exchange rates in emerging markets, including Indonesia," he stressed.

On this occasion, Perry said that Bank Indonesia predicts that the world's economic growth this year will only be 2.8 percent and will decrease to 2.7 percent in 2023.