Global Recession Likely to Happen in 2023, OJK Warns

TEMPO.CO, Jakarta - Mahendra Siregar, chief of the Financial Services Authority (OJK), has predicted that a global economic recession is almost certain to happen in 2023 or earlier.

"But what we cannot predict is how serious will the recession be and how long it will last," he said at a press conference of the OJK’s board of commissioners, which was followed online from Jakarta on Monday.

Overall, the Indonesian economy will continue to grow above 5 percent this year and next year, he added. Therefore, global and domestic economic conditions must be viewed from a complete perspective.

Despite the possibility of a global recession next year, the OJK has not specifically divulged which relaxation policies will be needed.

The OJK and the financial services sector are making constant efforts to maintain sustainable economic growth, in line with the government's target, Siregar said.

“If, in the next development, we feel that appropriate policies are needed to achieve the target, of course, we will formulate and endorse (the policies)," he added.

Based on the latest developments, economic growth and stability can be well maintained.

Further, the financial sector is optimistic about domestic economic stability though it will continue to be realistic by keeping a watch for the risks of transmission from the increasingly formidable global economic condition.

ANTARA

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