InfoSAWIT, JAKARTA - The Government of Indonesia focuses to supply bulk palm cooking oil for its people. The very expensive commodities in the world disrupt the economy globally that raises up the crisis. The control of commodity supply and price stability would be the successful keys.
Based on what World Bank lately reported, many countries in the world face the big challenges in the future, which is, stagflation. Still from the World Bank, the escalating inflation in some countries managed the decreasing economy in the globe because of the very expensive commodity and increasing people’s need, and also Covid-19 pandemic which still hits the world.
The World Bank about Global Economic Prospect which was recently released reported that the economy could be slowing down in 2022 to be about 2,9% per year globally. The projection is lower than it in January 2022 which reached about 4,1%. Compared to the previous year, 2021, the economy still developed up to 5,7% globally.
The high inflation is the main reason that the World Bank proposed which decreases the economic progress globally. World Bank thought, the inflation of consumers’ price in April 2022 compared to the previous year reached 7,8% (year on year/yoy). It is the highest record in the world since 2008. The average inflation in some developing countries reached 9,4% while in some advanced countries, the high inflation reached 6,9% (yoy).
Some economists in the world recently predicted, the inflation would take some time and raise stagnancy. World Bank also reported that stagnancy, as quoted from Wikipedia, is a condition which the economic progress is slowing down, jobless is high in numbers which impact to the decreasing capability to buy. If the commodities get more expensive because of the limited supply, one country would get high inflation.
The early warning about stagflation by the World Bank, the decreasing projection of economic progress which increases 2,9% are parts of the Government of Indonesia’s consent to manage Republic of Indonesia.
Source: Editorial InfoSAWIT, June 2022