Global Recession Starts Hitting Exports

The threat of a global economic slowdown and recession has slowly but surely started to affect Indonesia. One indication of this is a fall in exports.

KOMPAS/BAHANA PATRIA GUPTA

Trade Minister Zulkifli Hasan (left) breaks a jug accompanied by Maspion Group owner Ali Markus when releasing the 100,000th export container containing Maspion's aluminum products in Sidoarjo, East Java, Thursday (29/9/2022). The export destination is America with a value of 1.2 million USD.

Although we recorded solid economic growth amidst global crises and uncertainty of 5.44 percent in the second quarter and 5.23 percent in the first half of 2022, we must anticipate the imminent threat of a global recession on our exports.

The global economic slowdown that has resulted from high inflation, global monetary tightening, the Russia-Ukraine war, and the Covid-19 pandemic, have prompted various research institutions to lower their projections for world growth in 2022 and 2023. The global economy is generally forecast to be gloomier in 2023 than in 2022.