Coordinating Minister Airlangga: Better economic fundamentals, Indonesia will not experience recession

Tribunnews journalist, Nur Febriana Trinugraheni

TRIBUNNEWS.COM, JAKARTA – Indonesia is considered capable of surviving amid the global economic turmoil because Indonesia’s economic situation so far is relatively good with inflation reaching 4.2% compared to a number of others country.

With economic growth reaching 5.01%, Indonesia’s economy is relatively better than other countries and still avoiding the risk of recession.

“We have a GDP ratio of 42%, some of these countries reach 100%. Some countries are in recession, but Indonesia can see that the potential for recession compared to other countries is relatively very low, around 3 %,” Coordinating Minister of Economy Airlangga Hartarto said.

The International Monetary Fund (IMF) in its World Economic Outlook (WEO) this month estimates that Indonesia’s economy will expand by 5.3% in 2022 and accelerate by 5.2% in 2023.

Meanwhile, the economy of a large country, such as the United States (US), grew by 2.3%, well below the previous estimate of 5.7%.

While it is the country with the largest economy in Asia, China has recorded growth of 3.3% this year and 4.6% in 2023.

In the euro zone, growth has been revised down to 2.6% this year and 1.2% in 2023, reflecting the impact of the war in Ukraine and the tightening of monetary policy.

Read also: IMF sheds light on ballooning debt in Asia, these countries have recession potential

Canada’s economy is expected to grow 3.4% this year, down from 4.5% the previous year.

The economies of South American countries like Brazil are expected to grow by 1.7% this year, while the previous year, Brazil recorded growth of 4.6%. Meanwhile, Mexico’s economy grew 2.4% this year, down from 4.8% the previous year.

The IMF said global inflation had also been revised upwards, partly due to higher food and energy prices. This year, inflation is expected to reach 6.6% in developed countries and 9.5% in developing countries.

Read also: IMF warns high inflation could threaten economy with recession

Zera Carpenter

"Typical thinker. Unapologetic alcoholaholic. Internet fanatic. Pop culture advocate. Tv junkie."

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