The Return of Industrial Policy
This is the best time to rebuild the industrial strategy through downstreaming, which is supported by high investment rates for a more equitable (inclusive) social welfare.
Recent developments in the global economy are both dynamic and challenging. Good news came from the United States when December inflation receded to 6.5 percent from 7.1 percent in November and 9.1 percent in June 2022. The decline in inflation means the interest rate of the US Federal Reserve will be less aggressive. The risk of recession is also softened.
Even so, the outlook for the global economy is bleaker than previously forecast. The latest World Economic Prospect report, published by the World Bank in January, estimates that the global economy will only grow 1.7 percent this year. The US and European Union economies will grow 0.5 percent, Japan 0 percent and China 4.3 percent. The Indonesian economy is estimated to grow 4.8 percent.