No. 23/94/DKom
Global economic momentum
is growing yet the multispeed recovery is accompanied by large disparities
between countries. Recovery momentum not
only rests on successful pandemic handling and vaccination program implementation
but also depends on an effective policy response. The Governor of Bank Indonesia, Perry
Warjiyo, stressed the importance of coordinated global efforts to maintain the
economic recovery, while prioritising green and inclusive economic and
financial sector development. That was a
key takeaway of the virtual IMF-World Bank Spring Meetings, which also hosted
the G20 Finance Ministers and Central Bank Governors Meeting, from 1st
– 8th April 2021, with the Bank Indonesia Governor and RI Finance
Minister, Sri Mulyani Indrawati, attending via video conference.
The global economic
recovery faces several risk factors, including further potential pandemic
outbreaks, a tightening of global financial conditions, a prolonged economic
impact from the pandemic, the emergence of social issues, natural disasters and
geopolitical risks. Confronting such
risks, the International Monetary Fund (IMF) has recommended a policy response
tailored to the individual conditions and level of economic development in each
jurisdiction. Seeking to escape the
crisis, the exit strategy must focus on health sector spending, target-based
fiscal support, accommodative monetary policy and risk monitoring to ensure
financial sector stability. In terms of
safeguarding the recovery, efforts should focus on increasing productive
capacity and incentives to efficiently allocate resources. In the long term, efforts are required that
focus on strengthening international cooperation, reforming the policy
framework as well as addressing climate change.
The IMF projects global
economic growth at 6.0% in 2021 before moderating to 4.4% in 2022. Economic growth is supported by policies in
advanced economies and the ongoing global vaccination program rollout. Moving forward, the IMF expects economic
performance to be influenced by the pandemic, policy actions, financial sector
developments and international commodity prices, as well as economic capacity
to adjust to the various challenges facing the health sector.
At the G20 Finance
Ministers and Central Bank Governors Meeting, G20 member countries reiterated
their commitment to the global economic recovery, overcoming inequality,
increasing financial system resilience and pursuing a green economic recovery. The Bank Indonesia Governor supports global
efforts to strengthen financial sector resilience based on the different
characteristics of each country and took the opportunity to emphasise the need
for cautious assessments to avoid prematurely withdrawing policy support.
During the Spring
Meetings, the Bank Indonesia Governor, Perry Warjiyo, also conveyed Bank Indonesia's
vision to overcome the pandemic through policy synergy and close coordination
between the central bank, government, and other relevant authorities to
catalyse the recovery and maintain economic stability. The Governor’s Quotes are available for
download via the IMF-World Bank Spring Meetings website as follows:
https://www.imfconnect.org/content/imf/en/meetings/SM21/governor-quotes.html
Head of Communication Department
Erwin Haryono
Executive Director
Information about Bank
Indonesia
