When Other Countries Threatened by Recession, RI’s Economy Is Predicted to Skyrocket

Jakarta, CNBC Indonesia – The world is now covered in bad news continuously. Even a number of countries are now in danger of falling into a recession, but not for Indonesia.

The World Bank has just reported the latest projections for world economic growth, including Indonesia and a number of other countries. Indonesia will reportedly achieve 5.1% economic growth in 2022, higher than the previous year’s 3.7%.

When compared to a series of other developing and developed countries, Indonesia is far superior. For example, the United States (US), which will grow by 5.7% in 2021, must be willing to drop to 2.5% this year. As a result of monetary tightening, the US is predicted to have a recession.

Likewise with several countries in Europe, such as the UK and Germany. The spike in inflation was also responded to by an increase in the benchmark interest rate, so it was feared that it would lead to a recession. The European economy is forecast this year from 5.4% to 2.5% in 2022 and 1.9% in 2023.

Russia will almost certainly not be able to avoid a recession. The war with Ukraine and the attacks of sanctions from many countries, will make the country led by Putin will experience a contraction of 8.9%.

The threat of a recession is also approaching developing countries. Like Turkey whose economy fell from 11% to 2.3% and Poland from 5.9% to 3.9%. Furthermore, Brazil and Mexico also experienced drastic declines, where this year’s economy is predicted to grow only below 2%. Argentina grew 4.5% from 10.3% in the previous year.

Meanwhile, China is also experiencing an economic slowdown due to the worsening COVID-19 situation. China is forecasted to grow only 4.3% this year

The economic slowdown was caused by several factors. These include the spread of COVID-19, changes in the direction of monetary policy, supply chain barriers, the war between Russia and Ukraine and inflation.

David Malpass, President of the World Bank, even warned that world economic growth could be even lower to 2.1% this year and 1.5% next year. The risks that overshadow the world economy include the corona virus pandemic (Coronavirus Disease-2019/Covid-19), the Russia-Ukraine war, supply chain disruptions, and the ‘ghost’ of stagflation.

“The dangers of stagflation are worth considering at this point. Low economic growth is likely to continue for a decade due to weak investment in most countries. With inflation hitting record highs in recent decades and supply still set to grow low, there is a risk inflation remains high for a longer time,” Malpass told a news conference.

[Gambas:Video CNBC]