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RI insulated from heightened global debt risk, analyst says
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The International Monetary Fund wrote in April’s World Economic Outlook that emerging and developing economies were facing “systemic sovereign debt distress”, following rate hikes led by major central banks in the world. (Unsplash/Mufid Majnun)
I
ndonesia may be better positioned than many of its peers to weather a possible wave of debt crises in developing nations, an economist has suggested.
Publicly listed lender Bank Permata chief economist Josua Pardede told The Jakarta Post on Wednesday that Indonesia was relatively protected from debt crisis risk.
“[Our national debt] is only 39 percent of the gross domestic product [GDP], a figure that is relatively safe compared to other countries,” said Josua.
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Some developing countries have significantly higher debt-to-GDP ratios.
According to Trading Economics data, Brazil’s national debt was 78.29 percent of its GDP last year, while Thailand’s was 59.61 percent of GDP in the same year. Some countries even surpassed the 100 percent of GDP mark, meaning their total debt exceeded what their economies produced in a year.
The International Monetary Fund wrote in April’s World Economic Outlook that emerging and developing economies were facing “systemic sovereign debt distress”, following rate hikes led by major central banks in the world.
