BI Predicts 2024 World Economy To Grow Slow At 2.8 Percent

Illustration of Bank Indonesia (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) estimates that the world economy in 2024 will slow down at the level of 2.8 percent with a lower risk trend, although in 2023 it is estimated to grow in the range of 2.9 percent.

BI Governor Perry Warjiyo said that in 2024 the world's economic growth would slow down at the level of 2.8 percent with a lower trend of risk.

According to Perry, the economy of the United States (US) in 2023 will still grow strong, especially supported by household consumption and the domestically oriented service sector. Meanwhile, China will slow down, influenced by the weakening of consumption and the decline in the performance of the property sector.

Perry admitted that there are still many challenges that will be faced by the global, such as increasing geopolitical tensions to encourage energy and food prices to increase, resulting in the high level of global inflation.

"Increasing geopolitical conflicts encourages energy prices and food prices, so that world inflation remains high," explained Perry.

Perry mengatakan untuk mengendalikan inflasi, suku bunga kebijakan moneter di negara maju, termasuk Federal Funds Rate (FFR), diperkirakan akan tetap bertahan tinggi dalam jangka waktu yang lebih lama (higher for longer).

The increase in global interest rates is expected to be followed in long-term tenors with an increase in the yield of government bonds in developed countries, particularly the US (US Treasury), due to increased government debt financing needs, and increased long-term risk premiums (term-premia).