According to Sri Mulyani, Indonesia's Minister of Finance, the continued economic unrest around the world has caused the projection for world economic growth to deteriorate and even continue to be revised downward. Monetary policy was tightened in response to the significant volatility.
"The turmoil continues to erode the demand side and causes the global growth projection to be revised downwards," Sri Mulyani said at a press conference on the KiTa APBN, Tuesday (3/1).
The nation's treasurer said that the IMF has repeatedly downgraded estimates of global economic growth. At first, 4.4 percent, then 3.6 percent was revised, and by the end of 2022, 3.2 percent.
In contrast to the earlier forecast of 3.8 percent, the IMF predicts that the global economy will only expand by 2.7 percent this year. In coping with uncertainty in 2023, caution is required.
"This describes our roadmap going forward. Economic challenges will be colored with an atmosphere similar to 2022, and the weakening may start to manifest itself in various parts of the world," he explained.
Sri Mulyani is certain, despite this, that Indonesia will not be impacted by the trend of a weaker global economy. Because of this, she believes Indonesia should be grateful that between the fourth quarter of 2021 and the third quarter of 2022, its economy can increase by more than 5%.
"We still estimate that the recovery momentum will last. Indonesia will not be affected by the global climate, but resilience is quite good with maintained growth," she concluded.
Source by Kumparan.com, Edited by Aurora Team.
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