Jakarta, CNBC Indonesia – The Financial System Stability Committee (KSSK) admitted that they are quite worried about the global economic situation, which is estimated to be lower than the previous projection in line with the increasing number of risks.
This was stated by the Chair of the KSSK as well as the Minister of Finance Sri Mulyani Indrawati in a press conference. The statement made by Sri Mulyani is the result of the third periodic meeting of the KSSK which consists of Bank Indonesia (BI), OJK, and LPS.
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“Increasing the risk of stagflation and increasing uncertainty in global financial markets are KSSK’s concerns,” Sri Mulyani said, Monday (1/8/2022).
Sri Mulyani said that global inflationary pressures were in line with high commodity prices due to supply chain disruptions that were exacerbated by the war in Ukraine. Moreover, protectionist policies in the food sector are increasingly widespread.
“Various countries, especially the US, have responded to rising and high inflation by saying monetary policy and also being more aggressive in increasing interest rates, causing the economic recovery in the US to be stalled,” Sri Mulyani said.
Sri Mulyani explained, this phenomenon can trigger stagflation. Economic growth in developed countries such as Europe, Japan, China and India is also predicted to be lower than previously estimated. This situation is increasingly worrying about a recession in the near future.
“As is well known, the World Bank and IMF have revised down the latest global economic growth projections for 2022 from 4.1% to 2%, the IMF has revised down from 3.6% to 3.2%,” he explained.
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Inflation Continues To Rise, Sri Mulyani Cs Is Getting More Concerned!
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