The International Monetary Fund (IMF) believes that Indonesia’s economic performance is still quite promising amid the estimated global economic downturn. The institute plans to revise its forecast for global economic growth downwards next year amid growing risk of recession.
“Indonesia remains a bright spot amid a deteriorating global economy,” IMF Managing Director Kristalina Georgieva wrote in a post on her personal Instagram account @kristalina.georgieva on Monday (10/10) .
The IMF boss this week held a bilateral meeting with Finance Minister Sri Mulyani on the sidelines of the IMF-World Bank annual meeting in Washington DC, US. In her upload, Georgiva shared a photo with Sri Mulyani and a delegation from the Ministry of Finance.
In a separate upload, Sri Mulyani also wrote the topic of discussion when he met Georgieva. The pair discussed the latest developments in the global economy, with many countries currently in poor shape.
Georgieva told Sri Mulyani that a third of the global economy will come under economic pressure over the next 4-6 months. The pressure stems from the high debt burden problem, exacerbated by macroeconomic fundamentals and political stability issues.
However, it looks like the Indonesian economy will remain positive amid poor conditions. “Kristalina Georgieva appreciates Indonesia which has achieved strong growth with strong political stability and economic fundamentals amid challenging global conditions,” Sri Mulyani wrote, citing her personal Instagram account @smindrawati.
During the meeting, the two men also discussed the global economic downturn risk mitigation mechanism. This mechanism is in the form of a buffer or buffer for countries in difficulty, so as not to fall into a deeper abyss of crisis and economic recession.
“Indonesia will continue to actively support the formulation of concrete options and measures to mitigate the current risk of multi-crisis,” Sri Mulyani said.
The IMF’s praise for the national economy comes at a time when the global economic outlook is darkening. The IMF believes that the risk of a global economic recession has increased. Projected global growth of 2.9% next year is also expected to be reduced in its latest report this week.
Economic conditions will give the impression of being in recession, even if some countries still manage to grow positively. Indeed, real incomes have fallen and prices have risen.
The institute also warned that a prolonged recession could occur in many countries if monetary tightening is too aggressive and too rapid and carried out simultaneously across the country. Several central banks in developed countries such as the United States, Europe, the United Kingdom, Canada and Australia have tightened their monetary policies to fight inflation.
“We estimate that countries that make up about a third of the global economy will see at least two consecutive quarters of contraction this year or next,” Gerogieva said in a discussion at Georgetown University, United States. United last week.
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