"A softening in the global economy stems from the declining world trade volume due to the ongoing trade dispute between the United States and China, coupled with sluggish production activity reported in several countries," Executive Director of the BI Communication Department, Onny Widjanarko, noted in a statement at Jakarta on Tuesday.
Flatter growth in the United States is due to retreating economic confidence triggered by declining exports, which is stifling non-residential investment and household consumption, he remarked.
Widjanarko pointed to similar conditions being observed in Europe, Japan, China, and India.
Current global dynamics have exacerbated downside pressures on oil prices and international commodity prices, leading to mild inflationary pressures, he stated.
In response, various countries have loosened the monetary policy and introduced fiscal stimuli.
Meanwhile, less uncertainty in global financial markets has driven foreign capital inflows to developing economies.
Moving forward, uncertainty, triggered by trade tensions between the United States and China, along with other geopolitical risks will continue to demand vigilance owing to the potential impact on efforts to stimulate economic growth and maintain foreign capital inflows to bolster external stability. Related news: Indonesia's economic growth unaffected by global pressure: Minister
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