• Sat. Apr 13th, 2024

Policy Clarity vs. Uncertainty: The Need for Clear Directions to Drive Economic Growth in Indonesia and Beyond

BySamantha Jones

Apr 4, 2024
World Bank calls on new governments to deliver policy stability for Economy

The World Bank is urging countries, including Indonesia, to improve policy clarity for businesses as a way to drive economic growth. This is especially important in the face of limited fiscal and monetary measures that many countries are facing due to prolonged global uncertainty. Manuela Ferro, Vice President of the World Bank East Asia and Pacific, emphasized the significance of addressing policy uncertainty, particularly as many countries will be experiencing changes in leadership this year. She urged new administrations to communicate their policy directions early to businesses and households.

Ferro highlighted the challenges of providing fiscal or monetary stimulus to sustain growth over the long term. She stressed that businesses need clarity about the investment regime in which they operate and that implementing competition-enhancing policies would attract more investors into economic activities. The upcoming elections in many countries, including Indonesia, will have significant implications for policy direction and economic growth.

In Indonesia, Prabowo Subianto has been declared the winner of recent polls and will be sworn in this October along with his running mate Gibran Rakabuming Raka, son of incumbent President Joko “Jokowi” Widodo. The International Monetary Fund (IMF) has issued warnings about the need for countries to address escalating fiscal risks such as tight financing conditions and growing concerns about debt vulnerabilities. It is crucial for countries to proactively manage these risks to ensure sustainable economic growth.

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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