Recovering from the 2007-2008 financial crises, where the housing bubble burst had caused a major banking collapse, analysts are predicting more and more good tidings for 2014. A recent 2014 study that compares the U.S. recovery and other countries with banking crises shows that the U.S. is actually doing relatively well, avoiding a double-dip recession and took “only” 6 years out of the average advanced nations’ 7.4 years to recover to pre-crisis peak. A report from President Barack Obama’s economic team showed that only the U.S. and Germany have gotten back to pre-crisis GDP levels. Projections of U.S. growth reach levels unimaginable by the EU and other advanced nations, while unemployment levels continues to recede by 0.2 percentage point to 5.9 percent in September.
With its economic standing once again reaffirmed, the U.S. recovery process may have effects rippling out to other countries. Not a year has passed since the global market been struck with the rising dollar rate, due to hints from the Federal Reserve of “tapering” its quantitative easing program. Indonesia’s market had been shaken thoroughly, with the stock market and currency suffering worse than any in the region. Further financial recoveries, though predicted as “slow” and “small”, may be able to cause a much louder cacophony in markets all around the world.
With this impending shockwave from the U.S. recovery development, states around the world must prepare to face this new global challenge. This forum seeks to address certain questions regarding the topic, specifically: How much better can the U.S. grow? How substantial will this recovery be in the long run? What effects are these recoveries will make on the global market, especially Indonesia’s? How can Indonesia notice and manage these adverse impacts? These questions help to enhance the adaptability of Indonesia’s market towards the coming months.
On October 22, 2014, USINDO in cooperation with Paramadina Public Policy Institute, hosted an Open Forum with Wijayanto Samirin, Managing Director PPPI; Ndiamé Diop, Lead Economist World Bank; and Fauzi Ichsan, Senior Economist and Head of Government Relations Standard-Chartered Bank, discussing the U.S. Economic Recovery and Its Impact on the Global and Indonesian Economies.