The world economic situation is currently difficult because of some complicated problems. The recession also attacked developed and developing countries. However, the Minister of Finance revealed that there are four countries that are free from recession.
Sri Mulyani also revealed that there were countries whose economies were quite good and strong from the shock of a recession. Indonesia, he said, is one of them.
“Emerging countries, such as India, Indonesia, and Brazil, Mexico are relatively in a fairly good situation,” he explained quoted Monday (4/12/2022).
Quoting the IMF, India is expected to grow 6.8% this year and 6.1% next year. Meanwhile, the IMF predicts Indonesia will grow 5.3% this year and 5% in 2023. Meanwhile, according to the Bank of Mexico, Mexico is expected to grow by 1.8% in 2023.
Brazil’s Ministry of Economy predicts its economy will grow 2.1% next year. This figure was revised from the previous 2.5%. Despite positive growth, these countries are still at risk of being affected by the side effects of the recession from developed countries.
Sri Mulyani also revealed that her party is also wary of external conditions even though Indonesia is predicted to still grow at around 5% in 2022 and 2023.
The risk of recession is caused by an increase in the cost of funds and the potential for default in many countries that already have very high debt ratios. High commodity prices then caused inflation to soar.
“How many countries are in a default crisis which then also emerges in economic conditions? These conditions are getting more complicated. So the global economy is getting more complex,” he said.
Previously, the World Bank predicted that the global economy would shrink by 1.9% points to 0.5% in 2023. This is a worst-case scenario projection.
However, the worst is yet to happen. The reason is, in 2024, this international institution sees the world economy will again decline by 1% to 2.0%.
Sri Mulyani revealed that this was triggered by almost all countries in the world experiencing the risk of economic setbacks. Several countries are certain to experience an economic recession, including the United States, Europe, Britain, and China.
“A recession is not impossible in the United States. In 2022 and 2023, Europe is also likely to experience a recession,” said Sri Mulyani,