Bank Indonesia Estimates 2024 Global Economic Growth at 3%, Weaker Than Last Year

TEMPO.CO, Jakarta - Bank Indonesia mentioned that the global economy this year will be weaker compared to 2023. Deputy Governor of Bank Indonesia Juda Agung estimated the global economic growth to reach 3 percent in 2024, slightly lower than last year’s 3.1 percent.

“Departing from the global rate, I think, we could be cautiously optimistic. We estimated that [the economic growth] in 2024 will be lower than 2023,” Juda said during CNBC Economic Outlook 2024, as quoted from CNBC TV on Thursday. Despite the weak estimation, the growth in 2024 was actually better than previously expected at 2.8 percent.

According to Juda, what was concerning was the global inflation rate, which was influenced by geopolitical tension, disrupting the supply chain. On the other hand, Indonesia could be optimistic since the US’s economic performance was sufficiently strong, “based on the manpower and other considerable aspects”.

Earlier, Finance Minister Sri Mulyani also expected the global economy to remain weak in 2024. “Despite the inflation slowing down, which unable to lower the skyrocketing interest rate in the past 18 months,” she said on Feb. 22, 2024.

The minister also showed several global economic projections, where the IMF estimated the growth to be 3.1 percent and the World Bank estimated a lower 2.4 percent growth this year.

DEFARA DHANYA | AMELIA RAHIMA SARI

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