IMF-WB - Several risks still cast shadow on global economic growth

IMF-WB - Several risks still cast shadow on global economic growth

Bank Indonesia Deputy Governor Dody Budi Waluyo (right) and IMF Executive Director Juda Agung (left) give journalists a media briefing at the series of IMF Annual Meetings - World Bank Group 2018 in Nusa Dua, Bali, Saturday. ICom/AM IMF-WBG/Jefri Tarigan/wsj/2018. (KOMINFO/JEFRI TARIGAN)

Nusa Dua, Bali (ANTARA News) - The International Monetary Fund (IMF) has predicted that several risk factors, including the normalization of the Fed rate, global trade tensions and global crude price hikes, continue to cast shadows over global economic growth.

The dynamics of these risks will have an impact on the global economic growth projection of 3.7 percent for 2018 and 2019, IMF Regional Executive Director for ASEAN Juda Agung said at a media gathering in Nusa Dua, Bali, on Saturday.

The risks will also pose a challenge, not only for developing countries but developed nations, as well.

Juda suggested that the Indonesian government and related authorities should be prepared for the challenge by strengthening its buffer through foreign exchange reserves and fiscal policies.

"It is necessary to make improvements to withstand turbulence and establish cooperation under the worst circumstances. The cooperation covers the trade sector, in a bid to avoid the impact of the trade war," he said.

Meanwhile, Bank Indonesia (BI) Deputy Governor Dodi Budi Waluyo said, in a communique issued at its 38th meeting, that the International Monetary Fund Committee (IMFC) agreed that trade issues must be solved together.

This is in line with the speech by Indonesian President Joko Widodo, when opening the IMF-World Bank plenary session one day before. The president said no country will win or lose in the trade war, because all countries will shoulder the same burdens.

With the IMFC agreeing on concerted action to address global trade issues, Dody said the agreement will have a positive impact on Indonesia.

Reported by Calvin Basuki
Editing by Suharto