This is a good trend for consumption and good for the growth of MSMEs and the state's economy and to encourage Indonesia's economy to grow more than five percent per year.
Jakarta (ANTARA) - The middle class will constitute 84 percent of the world's population that will reach 9.45 billion by 2045, Minister of Trade Muhammad Lutfi stated at a webinar on Friday.

During the "Empowering SMEs to Recover Stronger" webinar, Lutfi noted that the high consumption of this middle class will benefit Micro, Small, and Medium Entrepreneurs (MSMEs).

"This is a good trend for consumption and good for the growth of MSMEs and the state's economy and to encourage Indonesia's economy to grow more than five percent per year," he remarked.

Related news: G20 schedule: Ministry to open DEWG forum next week

The minister estimated that by 2045, the world's population will grow, from 7.7 billion to 9.45 billion, most of which will comprise the elderly, and 60 percent of them will reside in cities.

Some 90 percent of the urbanization will occur in emerging markets, such as Indonesia. Hence, the government has decided to relocate the nation's capital city to reduce density in Greater Jakarta and Bandung.

In future, pluralism in the world's trade will continue to push the world's economic growth with the intensifying use of regional and local currency, Lutfi remarked.

Asia is also projected to contribute up to 54 percent of the world's total economy by 2045, with China as the superpower nation that dominates the economy.

Related news: Expect up to 3.6 million tourist arrivals if COVID subsides: Uno

However, the potential increase of the world's climate to 3-3.5 degree Celsius and the depletion of natural resources necessitates attention and handling in the future.

"Let us hope that this climate prediction is wrong. This is because if the world's temperature rises, the ocean's surface will rise, and Indonesia, as an archipelagic state, will become the victim," the minister remarked.

During the event, he also noted that Indonesia's economy had to grow 6.4 percent per year to become an advanced nation by 2045 and break free from the middle-income trap.

Related news: IKN becomes breakthrough to realize Indonesia's Vision 2045: BIN

Related news: IKN authority head, deputy head make great pair: President

Translator: Sanya DS, Fadhli Ruhman
Editor: Fardah Assegaf
Copyright © ANTARA 2022