Strong recovery in 2022 as foundation for facing challenges: Minister

Strong recovery in 2022 as foundation for facing challenges: Minister

Screenshot - Minister of Finance Sri Mulyani during the "Indonesia Media Public Lecture" that was monitored online in Jakarta, Friday (February 3, 2023). (ANTARA/Agatha Olivia Victoria/pri).

Jakarta (ANTARA) - Finance Minister Sri Mulyani believes the very strong pace of recovery in 2022 would become a solid foundation for the national economy to face short-term challenges while continuing the medium- and long-term development agenda.

"The government is optimistic that economic growth in 2023 will still be strong despite the prospect of a global economic slowdown," Sri Mulyani noted in an official statement in Jakarta, Tuesday.

The latest economic indicators also continue to show an expansive trend, including Indonesia's manufacturing Purchasing Managers' Index (PMI) that increased significantly in January 2023.

The minister noted that the government continues to monitor the current risks to the world economy. The risk of uncertainty is still quite high, even though the risks of a world economic slowdown are indicated to be softening.

In the January 2023 issue of the World Economic Outlook, the International Monetary Fund (IMF) had forecast global growth in 2022 and 2023 at 3.4 percent and 2.9 percent, or 0.2 percentage points higher than the previous projection in October 2022.

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This upward revision was driven by the strengthening of performance in several major countries since the end of 2022 and the easing of world inflationary pressure that is forecast to slow down gradually in 2023.

Sri Mulyani stated that the structural reform agenda to accelerate economic transformation would continue to be maintained in order to strengthen the structure and drive the performance of the national economy. The 2023 State Revenue and Expenditure Budget (APBN) has also been prepared, so that people will always stay vigilant but optimistic about the potential of the economy going forward.

Fiscal health remains an important concern in order to quickly and accurately target critical issues, including inflation control, stability, improvement of the people's welfare, and stronger investment improvements.

"Thanks to the hard work of the State Budget as a global pressure reducer, Indonesia is still a country with the title of 'The Bright Spot' in the midst of the current global shocks. This is what we must continue to maintain by remaining optimistic but also vigilant," the state treasurer concluded.

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