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Sri Mulyani Wary of China, US' Weakening Economy

26 March 2019 14:30 WIB

Finance Minister Sri Mulyani inaugurates National Export Dashboard (NED) Indonesia Eximbank at Indonesia Eximbank Prosperity Tower, Jakarta, Wednesday, March 27, 2019. Doc. Eximbank

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati claims that the economy of the United States and China are both experiencing a weakening, which she advised, “Must be kept a close eye on.”

The weakening of the economy, according to Sri Mulyani, is parallel to the world economic projection of 2019 that is slightly different from last year’s.

“The drop was from 3.9 percent to 3.7 percent, to 3.5 percent, and now maybe at an even lower number,” she said.

The Minister mentioned several existing indicators of an inverse curve from the US treasury yield curve which used to be a lead indicator in the past year, three month, and ten years, for a possible recession in the United States,” said Sri Mulyani.

The former World Bank managing director called for a strategy that will help boost Indonesia's economy in the midst of a possible global economic weakening. She sees that Indonesia’s economic growth momentum up to the end of 2018 was favorable, with a “bullish” capital market and increasing capital spending.

Lastly, Sri Mulyani underlined Indonesia’s exports on a regional scale, which she argues might differ in condition compared to the global economy.

CAESAR AKBAR



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