Japan and the UK in Recession, Sri Mulyani Reveals Its Impact on the Global Economy

GLOBAL ECONOMY – JAKARTA. England and Japan are reportedly entering a recession. This has raised a number of concerns, primarily that it will disrupt the global economy and will spread to developing countries.

Finance Minister Sri Mulyani Indrawati stated, this year several international institutions have indeed predicted that the performance of the economies of developed countries will be quite suppressed.

The cause is due to the increase in interest rates in various countries that are quite high in a very short time. Therefore, the impact of the UK and Japan's recession and economic weakening in various countries will affect the economic performance in those countries.

This will also, she continued, cause economic projections and outlooks for many countries, especially G7 members consisting of the United States, United Kingdom, Italy, Japan, Germany, Canada, and France, the European Union to tend to weaken.

“And this becomes a challenge for our global environment. So later we will see next week I attend the G20 in Brazil there will definitely be an update on the global economic conditions,” said Sri Mulyani to the media, Tuesday (20/2).

Sri Mulyani also revealed the reasons why Japan and England fell into a recession. In two consecutive quarters, both countries experienced economic growth contraction.

According to her, the economic conditions of these two developed countries are indeed quite weak, due to the geopolitical tensions of Russia Ukraine and the high interest rates of countries in Europe. “But also Japan and Europe in general will be affected by economic policies, especially rising interest rates,” she revealed.