Moody's "Global Economic Slowdown Expected... Possibility of Recovery in Indonesia"

"Global Inflation Risks Still Entrenched"
"Indonesia Shows Potential for Natural Resource Development"

International credit rating agency Moody's forecasted that the global economy will slow down as worldwide inflation lasts longer than expected, but some regions have the potential for recovery.

International credit rating agency Moody's.
Photo by Yonhap News

According to the US CNBC on the 31st of last month (local time), Marie Diron, Executive Director in charge of sovereign credit ratings at Moody's, stated, "We expect a global growth slowdown, which will affect emerging market Asia through regional financing access and trade environments."

Diron cited the causes of the ongoing economic slowdown as ▲ interest rate hikes ▲ financial system stress ▲ and China's growth deceleration.

Diron said, "Central banks have tried to adjust global economic trends by raising interest rates, but the risk of entrenched inflation still remains."

Regarding financial system stress, she added, "While interest rate hikes have had a positive impact on some banks' earnings, business adjustments to continuously attract deposits are also necessary," and pointed out, "Stress factors that have not yet appeared may materialize from the end of this year through next year."

Finally, Diron said, "We do not expect a rapid recovery from China, the world's second-largest economy," and forecasted that China's slowed growth will affect the entire region.

For these reasons, Diron said, "A slowdown is expected until next year," but also mentioned, "Relatively robust growth and favorable conditions can be seen in markets such as India and Indonesia." She explained, "In particular, Indonesia has the potential to develop its vast natural resources through mineral processing in the value chain."

Southeast Asian countries, including Indonesia, have large deposits of natural minerals such as tin, nickel, cobalt, and bauxite, some of which are important raw materials used in electric vehicle production.

This content was produced with the assistance of AI translation services.