JAKARTA - Bank Indonesia predicts global economic growth this year will drop to 2.50%. Based on the results of the Bank Indonesia Board of Governors' Meeting on March 18-19, 2020, Bank Indonesia Governor Perry Warjiyo explained that the Covid-19 spread to many countries outside China had put a pressure on the global economy.
Until March 18, 2020, Covid-19 had spread to 159 countries, not only in the Asian region, but also in Europe and the United States. This development caused extremely high uncertainty and reduced the performance of global financial markets, depressed many global currencies, and triggered a capital reverse to financial assets that were considered safe. February 2020 data shows various global early indicators such as economic actors’ confidence, Purchasing Manager Index (PMI), as well as electricity consumption and production that declined sharply.
"With downward risks remaining large, Bank Indonesia predicts that global economic growth in 2020 could drop to 2.5%, lower than the 2019 economic growth of 2.9% and also the previous projection of 3.0%," explained BI Governor Perry Warjiyo in today's media briefing (19/3).
Perry said, after the end of the COVID-19 outbreak, the global economy is predicted to increase again in 2021 to 3.7%, higher than the previous prediction of 3.4%. (LM)