Global Risk and Recovery

Indonesia's economic recovery continues with inflation under control. Even with rising global risks, the economic recovery is likely to continue. High economic growth can still be achieved.

The currently heightening global risk is related to the interest rate increases by the United States Federal Reservce and other central banks due to high inflation.

Inflation in the US is 8.4 percent, Europe 7.5 percent, the United Kingdom 9 percent, and even higher in many developing countries. The Russian-Ukrainian war has pushed up food and energy prices. Covid-19 lockdown measures in Shanghai, China, suppressed Chinese and global economic growth because it disrupted global supply chains and hampered consumption. A number of circles have even predicted stagflation, or simultaneous recession (negative growth) and high inflation.