Finance Minister Sri Mulyani Indrawati believes that the global economic recovery outlook in future would hinge on support offered through various stimuli, both fiscal and monetary, from developed countries.
“Our outlook for economic recovery in future depends on steps taken by developed countries that will continue to maintain fiscal and monetary stimulus,” she noted at a press conference here on Friday.
The minister later remarked that the global economy had shown a promising recovery trend in the second quarter of 2021, with recovery in the first quarter continuing into the next quarter.
This was marked by the strengthening of economic performance in the second quarter of 2021 from developed countries, such as the United States (US), which reached 12 percent (yoy). One of the factors was the base effect from the second quarter of 2020, which contracted 9.1 percent.
The US economy improved in line with the increase in the Purchasing Managers Index (PMI) by several manufacturers and relatively high inflation as well as the reduced unemployment rate heading to pre-pandemic levels.
Similarly, China’s growth in GDP came in at 7.9 percent on-year, while Singapore recorded a 14.3-percent growth in this quarter as compared to the 13.3-percent contraction in the second quarter of 2020.
The minister believes these developments had an impact on increasing the global trade transactions and commodity prices.
Meanwhile, Indonesia too felt the impact of the global economy strengthening. In the second quarter of 2021, Indonesia’s economy was able to grow at 7.07 percent (yoy), thereby encouraging a better direction of recovery.
“These developments indicate a good direction and strategy for Indonesia’s economic recovery,” she remarked.
On the other hand, the minister pointed out that amid the optimism over global recovery, there were still several countries, such as the UK, the Netherlands, Malaysia, China, and Thailand, reeling from the spread of the Delta variant of COVID-19.
“Several countries are still witnessing a spike in the number of cases of the Delta variant, which spreads easily and is more contagious,” she stated.
Source: Antara News