Bank Indonesia envisaged further improvement in global economic recovery, as stated in the upward revision of global economic growth projections by various international agencies.
“This strengthening of global optimism will also bolster growth in the volume of world trade with a positive impact on demand for exported products, thus contributing to domestic economic growth,” the central bank said in a statement issued on Wednesday.
Nevertheless, it says global economic recovery remains daunted by risks and uncertainty related to the debt crisis in several European countries and potential disruption in manufacturing output in the aftermath of the earthquake in Japan.
In addition, further escalation is projected in world oil and food commodity prices, generating inflationary pressure in many advanced and emerging economies including Indonesia.
