Thailand
Bank Indonesia Governor Explains Risks Faced by Global Economy
TEMPO.CO, Jakarta – Bank Indonesia governor Perry Warjiyo in the central bank’s annual meeting on Wednesday said there are at least five risks that must be watched out for amidst the global economic turmoil, including stagflation and reflation.
He mentioned the war between Russia and Ukraine as one of the factors that contributed to the global economic dynamics, apart from China’s lockdown policy that will remain in effect for the next 6 months.
“The world is at risk of experiencing stagflation and even reflation, global investors’ risk perception is negative,” Perry said at the Bank Indonesia Annual Meeting on November 30.
The Bank Indonesia governor mentioned the five risks in the global economy, such as the sluggish global economic growth that increases the risk of recession in the United States and Europe and the spiking inflation driven by skyrocketing global energy and food prices.
It is feared that the era of high-interest rates will last longer as the increases in the Fed’s interest rate are mainly projected to reach a level of 5 percent and remain at a high level in 2023.
There is also a risk of the strengthening of the US dollar which poses a risk to the continued weakening of the currencies of many countries, including Indonesia. Lastly, the swift flow of foreign capital leaving developing countries, which also includes Indonesia.
Source: https://en.tempo.co/read/1662885/bank-indonesia-governor-explains-risks-faced-by-global-economy