Bank Indonesia Thinks Global Economy Taking It Slow in 2024

So, Bank Indonesia (BI) just dropped some predictions, saying the global economy is gonna hit the brakes in 2024. Even though the financial market drama has cooled down a bit, BI Governor Perry Warjiyo thinks we’re in for a 3% global growth in 2023, but it’s gonna dip to 2.8% in 2024.

What’s Up with the Global Scene?

According to Governor Warjiyo, the U.S. and India are like the cool kids at the party, keeping their economies strong with people spending money and making investments. But China? Well, China’s having a bit of a slow dance, mainly because folks there aren’t spending much, and investments are taking a nap due to ongoing issues in the housing market and not-so-exciting fiscal help.

USA and India Holding It Down

Don’t worry, though. The U.S. and India are keeping the good vibes alive. Their economies are still flexing, thanks to folks spending cash and making moves. It’s all looking pretty positive for 2023. But, you know, the global economic rollercoaster might throw in some surprises.

China’s Got the Economic Blues

Meanwhile, China’s got some challenges to deal with. They’re looking at an economic slowdown, thanks to folks not splurging on stuff and investments taking a nap. Blame it on the ongoing housing market drama and not having enough money boost from the government. Tough times for China’s wallet.

Inflation Party Trends

BI also noticed that inflation in fancy countries, like the U.S., is going down a bit. It’s still a bit higher than what the Federal Reserve wants, but it’s on a downward slide. And guess what? China’s expecting a drop in inflation too, all thanks to the overall economic slowdown.

China’s Slowdown Effect

China’s expected slowdown is all about folks not spending and investing enough. It’s like a ripple effect from the housing market struggles and the government not throwing enough money into the mix. It’s a big deal and might have everyone feeling the pinch.

Global Inflation Chill

BI’s crystal ball shows that inflation in rich countries, including the U.S., is gonna keep on going down. Even if it’s still higher than what the Federal Reserve wants, the drop is gonna hang around. Over in China, they’re looking at less inflation, thanks to the overall economic cool-down.

Money Talk and Interest Rates

Okay, so here’s the scoop on the money chat. BI is thinking that the cool period for interest rate hikes in rich countries is wrapping up. Even though interest rates might be a bit high in the first half of 2024, they’re planning to ease up in the second half. It’s all about keeping things flexible with the changing global vibe.

In a nutshell, BI’s thinking we’re in for a chill 2024 on the global economic scene. While the U.S. and India are partying, China taking a breather. Keep an eye on how inflation and money moves—it’s like watching a movie, and we’re all in for a ride this year.