"We project the global economic growth at 5.9 percent in 2021 and to decline to 4.9 percent next year. I think it is important to emphasize the possibility of a decline due to the Omicron variant," Okamoto noted here on Friday.
In October 2021, the IMF released the global economic growth projection of 5.9 percent in 2021, 0.1 percent lower than the forecasted figure announced in July.
Related news: PIDI 4.0 to expedite industrial transformation in Indonesia: minister
A decline in the 2021 projection was in line with the decrease in the gross domestic product (GDP) in the third quarter of 2021 due to the spread of positive cases of the Delta variant around the world, Okamoto explained.
On the other hand, the emergence of a new Omicron variant coupled with supply chain disruptions had suppressed economic activities that had started to recover in the fourth quarter of 2021, he remarked.
Okamoto later stated that this crisis will have a prolonged effect on the economy and vulnerable groups since the Omicron variant had created a sense of uncertainty about the COVID-19 situation.
Related news: First 2022 G20 Sherpa Meeting held with strict health protocols
Related news: Indonesia to balance global, domestic agenda during G20 Presidency: BI
Translator: Astrid F H, Resinta S
Editor: Fardah Assegaf
Copyright © ANTARA 2021
