Covid-19 hampers global economic recovery: BI

Covid-19 hampers global economic recovery: BI

Indonesia's central bank (BI) Governor Perry Warjiyo. ((ANTARA))

Nevertheless, the Phase 1 Trade Deal agreed between the United States and China has helped to ease global uncertainty and stoke economic optimism concerning the global economic recovery outlook
Jakarta (ANTARA) - The global economic recovery process has been hampered by the Covid-19 (coronavirus disease 2019) outbreak since the end of January 2020. Nevertheless, the Phase 1 Trade Deal agreed between the United States and China has helped to ease global uncertainty and stoke economic optimism concerning the global economic recovery outlook, Bank Indonesia Governor Perry Warjiyo said in a statement received in Jakarta, Thursday.

The latest reading on a number of global economic indicators, such as consumer confidence, Purchasing Managers Index (PMI) and export orders, recorded gains from December 2019-January 2020.

Optimism has been eroded, however, by the Covid-19 outbreak, which is expected to subdue economic performance in China and impede the global economic recovery process, at least during the first quarter of 2020.

Bank Indonesia has revised its global economic growth projection for 2020 from 3.1 percent to 3.0 percent before accelerating to 3.4 percent in 2021, up from the 3.2 percent projected previously for 2021.

Covid-19 has rattled global financial markets, increasing risk and triggering a reversal of global flows from developing countries to safe-haven assets and commodities, which has intensified currency risk in emerging market countries.

Moving forward, efforts to contain Covid-19 demand vigilance due to the potential impact on economic growth, trade volume and international commodity prices as well as capital flows to and from developing countries, including Indonesia. (INE)
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