Reasons for RI to be Free from the Threat of an Economic Recession According to the World Bank

World Bank said a number of countries were threatened recession in the near future due to the war between Russia with Ukraine to the lockdown in China.

However, Indonesia can be said to be free from the threat of a recession because the World Bank projects the economy to continue to grow at 5.1 percent. In fact, the Indonesian economy is projected to grow by 5.3 percent in 2024.

So, what makes Indonesia free from the threat of recession?

Citing data from the World Bank, Wednesday (8/6), the surge in commodity prices had a positive impact on Indonesia’s economic growth. The reason is, Indonesia exports a lot of commodities to a number of countries.

Thus, when commodity prices are high, it will bring benefits to RI. State revenues automatically increase from the export of these commodities.

“Growth is generally supported by higher commodity export prices in Indonesia and Malaysia,” the World Bank wrote.

One of the commodities exported from Indonesia is nickel ore processing. The commodity was recorded to have increased by about 30 percent amid Russia’s war with Ukraine.

[Gambas:Video CNN]

(aud/one)

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