Bank Indonesia Raised Global Economic Growth Projections for 2024

GLOBAL ECONOMY - JAKARTA. Bank Indonesia (BI) has raised its forecast for global economic growth in 2024. 

BI Governor Perry Warjiyo predicts that global economic growth this year will be around 3% yoy, or up from the previous estimate of 2.8% yoy. 

Perry says, the improvement in economic growth is supported by the strong economies of the United States (US) and India. 

“In line with high household consumption and investment,” Perry said in a press conference, Thursday (21/2) in Jakarta. 

However, there are still risks looming. Such as, the weakening of China's economic growth. 

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There are also recession news from Japan and the UK. Because, both countries recorded negative growth for two consecutive quarters. 

The escalation of geopolitical tensions continues, thus disrupting supply chains and increasing the prices of food and energy commodities, then hampering the rate of global inflation decline. 

Uncertainty in the financial market is still high. US interest rates are believed to only fall in the second semester of 2024, in line with the still high US inflation. 

This is what causes the weakening of the exchange rate in developing countries, because it holds back the continued inflow of foreign capital into developing countries due to the rising yield of US debt securities. 

“These conditions can lower the prospects for global economic growth in the future,” added Perry. 

Therefore, Perry emphasizes that these conditions need to be responded to by strengthening the policies of countries around the world, including Indonesia. 

Strengthening the stance to prevent the negative impact of these global slowdown risks from further affecting each country's conditions.