Antara News are reporting that Julia Penny, President of the Institute of Chartered Accountants in England and Wales (ICAEW), believes that economies in Asia, including Indonesia, will remain strong in 2023 despite the prospect of a global recession.
Developed countries such as Singapore, South Korea, New Zealand, Australia, and Taiwan have all experienced a decline in manufacturing production.
Meanwhile, the economies of developing countries such as China, Indonesia, and Thailand have fared better compared to those of other developing countries.
“The decline in manufacturing production in developed countries was partly due to delays in opening regional borders, which contributed to an increase in domestic demand, which is currently leading to an increase in demand above the average,” Penny said in an official statement released on Thursday.
However, this decline is unlikely to last long given that regional restrictions are starting to be relaxed and regional borders are starting to reopen.
In general, the decline in manufacturing production in developed countries will eventually hamper the growth of manufacturing production in Asia, say Antara News.
Meanwhile, Indonesia is expected to record a decline in its gross domestic product (GDP) of 3.6-percent in 2023.
“Even though Indonesia’s economic growth in the third quarter of 2022 was 5.72-percent compared to the same period the previous year, with the global situation and the threat of a recession, Indonesia is predicted to experience a decline in national economic performance,” she said.
However, Indonesia’s economic situation is predicted to improve slowly with a projected increase in demand among the Indonesian people for domestic manufacturing production.
This increase in domestic demand is expected to contribute 6-percent to Indonesia’s GDP growth in 2023.
“This can suppress the threat of an impending recession,” Perry said.
Source: Antara News