DEPOK (eNBe Indonesia) - After a summer hit by supply-chain bottlenecks and rising inflationary pressures, the International Monetary Fund (IMF) said momentum in the US and China – the world’s two biggest economies – was slowing. The global supply chain crisis could fuel a severe dose of stagflation.
IMF has warned the world economy remains “hobbled” by the COVID-19 pandemic. Kristalina Georgieva, the IMF’s managing director, said the most serious obstacle to a full recovery was the vaccine divide between rich and poor nations and warned the global economy could suffer a cumulative $5.3tn loss over the next five years unless it was closed.
Georgieva said the divergence in economic fortunes was becoming “more persistent,” adding that while output in advanced economies was projected to return to pre-pandemic trends by 2022, it would take many more years for emerging and developing countries to recover.
In September 2021, the World Bank (WB) cut its projection for the Indonesian economy to 3.7% this year, from 4.4% growth projected in April 2021, in line with the growing Delta variant COVID-19 cases. The Asian Development Bank (ADB) also cut its projection for Indonesia’s economic growth this year to 3.5%, from the previous 4%. ADB also estimates Indonesia’s economic growth in 2022 will be revised downwards to 4.8% from the previous 5%.***