JAKARTA - Escalating trade tensions between the US and China and other geopolitical risks continue to put pressure on the global economy and increase uncertainty in financial markets, said Bank Indonesia (BI) Governor Perry Warjiyo.
"The US economy is slowing down due to falling exports and non-residential investment. The slowing economic growth of Europe, Japan, China, and India also continues, influenced by declining exports which also have an impact on the decline in domestic demand," Mr Warjiyo said at a press conference at the BI headquarters, Thursday (19/9).
These conditions, Mr Warjiyo added, also influenced Indonesia's economic growth. Exports are not expected to improve in line with falling global demand and commodity prices, although manufactured export products such as motor vehicles continue to show positive growth.
"This condition has an impact on the lack of strong investment growth, especially non-construction investment, while the growth of construction investment is quite well driven by the development of national strategic projects," Mr Warjiyo said.
In addition, private consumption also had limited growth although household consumption remained stable thanks to support from the distribution of government social assistance.
"Going forward, the policy mix pursued by Bank Indonesia and the government is expected to maintain the momentum of Indonesia's economic growth so that it is below the midpoint of the 5.0%-5.4% range in 2019 and rises towards the midpoint of the 5.1% -5.5% range in 2020," concluded Mr Warjiyo. (MS)