Bank Indonesia: Economic Growth to Increase 5.8 Percent

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  • Governor of Bank Indonesia Perry Warjiyo delivered a presentation at the Digital Transformation For Indonesian Economy event at the Kempinski Hotel, Jakarta, Wednesday, March 11, 2020. TEMPO held a discussion entitled Digital Transformation for Indonesian Economy with the theme Finding The New Business Models. TEMPO / M Taufan Rengganis

    Governor of Bank Indonesia Perry Warjiyo delivered a presentation at the Digital Transformation For Indonesian Economy event at the Kempinski Hotel, Jakarta, Wednesday, March 11, 2020. TEMPO held a discussion entitled Digital Transformation for Indonesian Economy with the theme Finding The New Business Models. TEMPO / M Taufan Rengganis

    TEMPO.CO, JakartaBank Indonesia (BI) Governor Perry Warjiyo estimates that the global economic growth in 2021 will be 5.8 percent, higher than the previous projection of 5.7 percent.

    "The global economy is predicted to grow at a higher rate than previously projected amid global market uncertainty that is increasing again due to the spread of the Covid-19 delta variant in various countries," Perry said in an online press conference on Thursday, July 22, 2021.

    BI governor explained that the increase in economic growth in the United States and the European region was complementary with the acceleration of vaccination and the continued fiscal and monetary stimulus in these countries.

    In regions such as India and ASEAN, according to Perry, it is estimated to be lower. This is due to the implementation of people’s mobility restrictions in order to suppress the re-escalation of Covid-19 cases. Meanwhile, the high economic growth will be pivoted by China.

    In line with economic growth which is expected to increase, trade volume and world commodity prices are also expected to be higher. This would mean that it would be able to support exports of developing countries, including Indonesia, in order to boost the national economic recovery.

    Meanwhile, the global financial market uncertainty has increased due to the concerns in the market regarding the increasing spread of Covid-19 as well as its impact on the world economic outlook.

    Read: Sri Mulyani Forecasts Economic Growth Up to 8.3% in Q2 2021

    Syaharani Putri | Maudey K. Setyakusuma (Intern)