Febrio Kacaribu, the Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, considers that Indonesia is still a bright spot amidst gloomy global economic growth projections, according to reporting from Bisnis.Com
In the April 2023 edition of the World Economic Outlook report, the International Monetary Fund (IMF) revised its projection for global economic growth from the original 2.9-percent to 2.8-percent. This decrease was in line with the turmoil in the financial sector in the United States (US) and Europe, which has been exacerbated by high inflationary pressures.
Global inflation is projected to rise to 7-percent in 2023 and in the midst of global economic uncertainty, the IMF in its latest report revised up Indonesia’s economic growth from 4.8-percent to 5-percent in 2023.
Meanwhile, the economic outlook for 2024 is quite moderate at 5.1-percent, say Bisnis.Com.” The increase in the projected economic growth by the IMF shows that Indonesia is still one of the bright spots in the midst of a global situation full of uncertainty,” said Febrio.
He said that in line with IMF projections, the Indonesian economy continued to show resilience. This is at least reflected in the Indonesian Manufacturing PMI, which until last March was consistent at the expansion level for 19-consecutive months.
From the consumption side, the index of retail sales and consumer confidence is still high with relatively moderate inflation at 5-percent Year-on-Year (YoY).
Febrio also assessed that Indonesia’s external position also remained healthy, supported by a trade balance, which has posted a surplus for 35-consecutive months, report Bisnis.Com.
In addition, state revenues grow with higher quality state spending. According to him, the government will continue to strive to maintain the momentum of recovery and stability of the national economy, one of which is by controlling inflation in a moderate position. “With the large contribution of domestic demand, various efforts to control inflation so that it remains at a moderate level are very crucial to continue to maintain the momentum of economic recovery and people’s purchasing power,” said Febrio.
Source: Bisnis.Com
