JAKARTA - Bank Indonesia (BI) recorded that global economic growth is slowing down despite lessening uncertainty in global markets.
“There are a number of positive developments related to trade war negotiations between the US and China and the UK’s withdrawal from the European Union or Brexit, although several geopolitical risks still remain,” BI Governor Perry Warjiyo told a press conference at the BI headquarters, Thursday (19/12).
BI forecasts that global economic growth will reach 3% in 2019, down from 3.6% in 2018, and slightly rise to 3.1% in 2020 with support from the growth of developing countries.
In addition, the bank central also predicts that global economic prospect going forward will be affected by progress in the US-China trade deal, the utilisation of trade diversion by developing countries, fiscal stimulus effectivity and monetary policy relaxation, and geopolitical conditions.
“The prospect of a global recovery is a particular focus because it could influence the prospect of domestic economic growth and foreign capital inflow,” Mr Warjiyo added. (MS)