Jakarta –
The World Bank (World Bank) has revealed that the risk of a global recession in 2023 is increasing. Because central banks around the world are simultaneously raising interest rates to fight inflation.
On the other hand, the three major economic powers in the world, namely the United States (USA), China and the European Union (EU), have slowed down.
“Even a moderate blow to the global economy in the next year could push it into a recession,” the World Bank said in its new study.
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The world economy is currently in the sharpest slowdown since a post-recession recovery since 1970. Consumer confidence has also declined more dramatically than before the previous global recession.
He fears that this trend will persist with the consequences of emerging markets and developing economies collapsing.
So what is the fate of Indonesia? Political Economy and Political Studies (PEPS) CEO Anthony Budiawan revealed that global economic conditions will still be depressed at present.
Furthermore, the inflation rate has not yet fallen, so interest rates will continue to rise until next year.
“Public consumption and investment will decrease, perhaps there will be companies that will fail and conditions will weaken,” he said on Friday (9/16/2022).
He said this will trigger a weakening of the world economy, including Indonesia. Especially if commodity prices drop and accelerate the weakening of the Indonesian economy. Therefore, the government needs to be more expansive in adopting fiscal policy.
CELIOS director Bhima Yudhistira Adhinegara said it was not just a projection because the economies of several large countries have slowed down.
“This is not just a forecast, but it happened to the United States (US) which is negative, this reflects a recession in developed countries,” said Bhima.
Bhima said the European Union is currently under pressure on economic growth. Especially with the energy crisis and the food crisis so that the cost of living for people continues to rise.
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