Global Economic Growth Shows Signs of Strengthening

The International Monetary Fund (IMF) estimates that the global economy grew by 3.9% in 2018 compared to the previous year. This projection is 0.2 percentage points higher than the previous estimate. Similarly, for 2019, the projection was also raised by 0.2 percentage points to 3.9%. Global economic growth has increased since 2016. This suggests that global economic growth will continue to strengthen.

US President Donald Trump's tax cuts, implemented at the beginning of the year, are one of the reasons the IMF raised its projection for the US economy's growth by 0.4 percentage points to 2.7% this year compared to the previous year. However, China's economy is expected to slow slightly this year to 6.6% from 6.8% the previous year. Developing and emerging market economies are projected to grow by 4.9% in 2018 and 5% in 2019.

Meanwhile, Indonesia's economy, as targeted in the 2018 State Budget (APBN), is projected to grow by 5.4% compared to the previous year. It is then predicted to grow by 5.5-6.5% in 2019 and 5.7-6.7% in 2020. The economies of the five ASEAN countries (ASEAN 5) remain solid and are predicted to grow by 5.3% this year.