Gov’t warns about risks of global economic decline
JAKARTA – The government keeps an eye on various global risks towards the national economic development following the projected decline in the global economy to 5.9% stated by the International Monetary Fund (IMF). Previously, IMF had estimated the global economic growth rate to reach 6% in 2021.
Febrio Kacaribu, Head of Fiscal Policy Agency of the Ministry of Finance, clarified that until today, the COVID-19 pandemic is still the government’s primary focus.
“The government would ensure that economic and fiscal policies would keep supporting the measures to control the pandemic, maintain the economic recovery, and accelerate structural reformation,” Kacaribu explained in the press release, quoted today (14/10).
According to Kacaribu, IMF mentioned that the global economic recovery is still on a solid track. However, there are several aspects that could alter the growth projection. For example, there are supply disruptions in the developed countries and worsening COVID-19 situations in developing countries.
In the October 2021 World Economic Outlook, the IMF revised the global economic growth rate to 5.9%. However, the 2022 economic growth rate projection remains at 4.9%.
Indonesia’s economic growth rate is estimated to reach 3.2%, decreasing 0.7 percentage points (pp) from its initial level in July 2021. Furthermore, IMF had also corrected economic growth rates in other Asian countries by over 1 pp. For instance, Thailand’s growth rate estimation is 1.0%, dropping 1.1 pp; while Malaysia’s at 3.5%, decreasing 1.2 pp; the Philippines 3.2%, down 2.2 pp; and Vietnam 3.8%, falling 2.7 pp. (LK/ZH)