BI Calls 5 Uncertainty Issues Influence The Global Economy

Illustration (Photo: Doc. ANTARA)

PADANG - Bank Indonesia (BI) Representative of West Sumatra (West Sumatra) said there were five issues of uncertainty, which are now affecting the global economy, so that it has an impact on the national level, including Indonesia.

"The global economy is actually not doing well, because there are five issues of uncertainty at the global level," said Head of BI Representative for West Sumatra Province, Endang Kurnia Saputra, quoted from ANTARA, Friday, March 15.

First, the global economic tendency that tends to slow down due to the impact of the war between Ukraine and Russia. This condition exacerbated geopolitical tension between Israel and Palestine and the conditions that occurred in the Red Sea.

As a result, global economic growth has slowed. In 2023, the International Monetary Fund or IMF predicts the global economy will grow by 3.1 percent.

However, by 2024, the IMF will correct the global economy to a maximum of only 3.0 percent.

"Similar to the IMF, BI also estimates that global economic growth will only range from 3.0 percent," said Endang.

The second factor is inflation, which usually occurs in developed countries, has now turned to developing countries, including Indonesia.

For example, the increase in the price of red chilies which touched Rp. 150,000 per kilogram at the merchant level.

"So, countries like Indonesia are experiencing an increasing economic tendency," he said.

Furthermore, the third factor that affects the global economy is the increase in interest rates which tend to be high in a long time. And, in many countries, people prefer to hold cash.

The former Deputy Head of BI Representative for DKI Jakarta said the phenomenon was also realized in the Indonesian economy. For example, people in the country prefer to store cash or gold.

"We can see this with the high price of gold," said Endang.

Finally, there is a phenomenon at the global level in the form of strengthening the US dollar currency. In fact, the United States is experiencing a budget and trade deficit, especially with China.

In fact, Uncle Sam's country has a large enough debt. However, it does not affect the value of the currency in the country and instead strengthens.