In 2024, prediction of global economy is estimated to increase by 5% from the previous year. The global economy in 2024 is estimated to still be in a weak position, where even though inflation has moderated or decreased, this has not necessarily reduced interest rates which have soared quite high in the last 18 months.
If you agree with our opinion in this article, sure, for us global economy in 2024 should take be high position after the pandemic had done. But many countries hardly build their economy to high positions. Is that right? Let’s read more deeply into are we have to say that is true or not, and how that happen?
Introduction
Countries in the world are trying to improve the economy by selling finished goods such as oil exports, basic commodities and MSME products.
In 2024 there will be a slowdown that will reduce real GDP growth to below 1%, especially amidst the sloping economic outlook for the US—as one of Japan’s main partners—. However, growth of around 1% will resume in 2025 with global demand recovering.
What is more worrying is China’s economic development. This country with a large population has major problems in the real estate sector which will take at least four to six years to resolve. The restructuring process—including recapitalization—of battered large developers takes quite a long time due to the complexity of the issues.
To illustrate, housing construction in the relatively poor Guizhou Province can take more than 20 years to complete. Meanwhile, some other provinces, such as Jiangxi and Hebei, need at least ten years.
There are so many incentives and stimuli provided by the Chinese Government, both monetary stimulus, in the form of a low benchmark interest rate of 2.5% with a weighted average minimum reserve requirement (GWM) ratio of 7.4% and foreign currency GWM of 4%, as well as fiscal stimulus in the form of reduction Tax payments continue to be disbursed to encourage economic recovery.
A rating agency, Fitchs Ratings estimates global economic growth in 2024 at 2.4% yOy. You can see on this below, sure this is expressed directly through a quote:
“Policy rates are almost at their peak but the pace of decline will be much slower and shallower than the increase since the start of 2022. Interest rates will not return to pre-pandemic levels, even in the medium term that is very likely. ”
This institution estimates that even America itself experienced a shrinkage of 0.5% in early January 2024. This is because of Russia limits trade with America through the export-import market.
But the resilience of US growth reflects renewed fiscal easing, consumers’ willingness to continue tapping excess savings and strong private sector finances. So far the impact of monetary tightening through the ‘cash flow’ channel on increasing debt servicing costs has been limited.
For this reason, based on the graph above, growth has slowed slightly to 2.4% with an increase in real interest rates, but currently we estimate that growth will remain positive until 2024.
Lets Reflections on Asian Countries
Based on the visual capitalist data above, India is the top country with quite rapid economic growth.
Talking about economic growth, India seems to be a star that is shining brightly in the global economic sky. The country has not only improved its economy, but has soared brilliantly. Why? Many factors contribute to India’s booming economic growth.
One of them is demographics. Imagine, India is home to more than a billion people. Amazing, right? This large population provides an unlimited market for goods and services, fueling a constant pulse of economic activity.
Not only that, India is also experiencing a surge in the technology sector. The government and private companies have pumped massive investments into the information technology industry, making India one of the world’s leading technology hubs. Combine this with the start-up boom taking place in the country, and you can see why India is a magnet for investors from all over the world.
Meanwhile, below is China, this country is predicted to increase by 4% because China continues to succeed in controlling the virus. This epidemic can help China strengthen its position in the global economy.
It is possible that American and European companies will focus their orientation towards China because of the country’s potential, as a source of significant growth in the post-pandemic world.
China’s jump in share of global output is just one feature of the extraordinary achievements its economy has achieved over the past year. Plus, China is also successful in the cellphone and Android sales market, with 8.9 million smartphone units shipped in the three month period ending in October 2023. IDC said vendors competed aggressively in almost all price segments.
How about Economy in Indonesia?
How about our country? We speak the truth, but we think you will not believe us. Sure however, Indonesia became the first ASEAN representative to succeed in strengthening the global economy in 2024.
From the data above, Indonesian high 14% to be a strengthen the global economy this year. In our opinion, the increase in this figure means that Indonesia’s potential can be maximized in the field of pharmaceuticals and chemicals produced from nature.
Indonesian also has abundant natural resources in the forest to be used as medicine. Even the European Union and China recognize Indonesia as a strong competitor in the global economy. The European Union also uses Airbus Indonesia products compared to other countries. This is proof that Indonesia is competitive.
Prediction of Global Economy: Indonesian will be the Most Confident in 2024
Indonesian has undertaken significant structural reforms in recent years. These steps include simplifying regulations, opening more sectors to foreign investment, and improving infrastructure. All of this opens the door to more dynamic and sustainable economic growth.
Next, we have to talk about economic diversification. The Indonesian government has directed efforts to no longer depend on a single economic sector. Instead, they have encouraged the development of other sectors such as tourism, agriculture and manufacturing. This diversification provides greater economic resilience to global shocks.
Not to forget, we must also mention investment in human resources. Strengthened education and training programs have improved the quality of Indonesia’s workforce. A skilled and productive workforce is a valuable asset for sustainable economic growth.
Apart from that, it cannot be ignored that Indonesia’s geographical position provides significant advantages. Located between two oceans and with a region rich in natural resources, Indonesia has great potential for rapidly growing international trade.
However, of course, there are challenges to be faced. For example, Indonesia still needs to improve its infrastructure to support sustainable economic growth. Also, it is important for the government to continue to improve the investment climate and increase political stability.
The Presence of a New President Adds Dominance
Don’t forget why we say all opinion to put into here, the important things is a new presence of new president come to our country. We can speak loud with honest!
Indonesia’s increasing strengthening of the global economy was also added to by the presence of a new president, Prabowo Subianto. Considering that Indonesia chose Prabowo Subianto to be the next president for the 2025 program.
Self-confidence brings economic growth fast, Prabowo presents a downstream program with strategic keys so that Indonesia can become a developed, prosperous and prosperous country. This is in line with the strategic program policies pushed by the current government of President Joko Widodo. Prabowo expressed this in front of the media crew that his new program would eradicate poverty.
“The aim of independence, apart from protecting all of Indonesia’s blood, is to make our nation prosperous and intelligent. An independent nation is a nation that is able to eliminate poverty among its people. The implementation of down streaming or processing of natural resources in the country can increase added value for the people,” said Prabowo to bestengagingcommunities, Thursday (March, 19).
Foreign countries, according to Prabowo, would be furious if Indonesia implemented down streaming. They want Indonesia to sell raw materials at low prices, for this reason the new president wants this program to exist.
Hirilization Program and Prabowo Become President Make Indonesia Confidence Become a Strong Global Economy in 2024
First of all, let’s talk about the “Hirillization Program”. This term may sound foreign to some people, but it actually refers to a broad and intensive infrastructure development strategy designed to accelerate a country’s economic growth.
In a political context, downstream programs are often used to convey ambitious development promises and focus on infrastructure development including roads, railways, ports, airports and other resources that support economic growth.
When we talk about Prabowo’s superiority to become president, we have to consider the subjective views and various arguments debated by his supporters. One argument that often arises is firm and authoritarian leadership which is thought to bring stability and firmness in facing internal and external challenges.
In addition, Prabowo is often considered a strong and experienced figure in the military field, which can be interpreted as superiority in terms of national security and state defense. His supporters may also refer to his political vision which is considered bold and innovative in dealing with national issues.
However, it is important to remember that assessments of Prabowo’s merits as a presidential candidate are highly subjective and vary depending on the individual’s point of view and their political views.
Regardless, discussions about a candidate’s merits should include a careful and comprehensive analysis of his or her programs as well as the candidate’s track record and competencies. Prabowo also sees that down streaming can be the future in Indonesia with the natural wealth that Indonesia has.
The development of the automotive industry towards environmental friendliness by replacing fossil energy with batteries is an opportunity for Indonesia to develop its automotive industry.
“We can see that future developments in the industry will lead to the electric automotive industry and Indonesia is in a competitive position to meet that,” explained Prabowo.
Apart from that, his party has also created industrial trees for 21 superior commodities which can be offered for downstream processing. Some of them include copper, nickel, bauxite, tin and seaweed.
Conclusion
At this point we can conclude, basically, Indonesia has become a country that is developing economically. The proof is that during the 2019 pandemic, Indonesia did not experience financial bankruptcy. The global economy in 2024 will also grow rapidly with new programs that have been designed by the government.
Don’t forget with the existence of factors that support Indonesia’s fortunes, that the global economy will increase significantly, one of which is Indonesia’s very strategic location, and supported by very abundant natural wealth, it is very natural that Indonesia is very confident. of economic growth.
Apart from that, with the downstream program promoted by Indonesia’s new president, Prabowo Subianto, nothing is impossible, if Indonesia is economically independent and progresses rapidly. Apart from Prabowo Subianto’s experience, significant structural reforms in recent years have also supported Indonesia’s rapid prediction of global economy progress.
