Jakarta: President Joko "Jokowi" Widodo has instructed his cabinet to anticipate the impacts of global economic slowdown.
"The global economy is slowing down. The risk of a global recession is rising," President Jokowi told a cabinet meeting here on Wednesday, September 4, 2019.
The former Jakarta governor said that the government should be able to attract more foreign direct investment (FDI). He also ordered his economic team to improve the country's current account balance.
Ongoing trade tensions coupled with geopolitical risks are undermining world trade volume and global economic growth. A softening of growth is predicted in the United States as exports decline along with non-residential investment.
Flatter economic growth in Europe, Japan, China and India is the result of restrained external sector performance and dwindling domestic demand. Global economic moderation continues to suppress commodity prices, including the global oil price.
In the second quarter of 2019, national economic growth stood at 5.05 percent (yoy), retreating slightly from 5.07 percent (yoy) in the previous period due to the ongoing export contraction.
Meanwhile, stronger consumption and stable investment prompted an uptick of domestic demand, which is underpinning national economic growth.