The economic recession becomes a global threat next year. Countries, including Indonesia, have begun to be aware of this threat.
According to financial planner from Finante.id, Tommy Hilman, Indonesia also experienced a recession in 2020 due to the impact of the COVID-19 attack.
“In 2020, Indonesia also experienced a recession due to COVID-19. The value of GDP was negative for two consecutive quarters,” said Tommy as quoted from HaiBunda, Friday (28/10/2022).
The recession has an impact on slowing trade, sluggish business, rising unemployment, rising prices, and decreasing people’s purchasing power. On the other hand, Tommy said, the threat of a recession is not to scare, but to encourage vigilance.
“Not to frighten us, but we need to be vigilant and careful about personal financial conditions. We need to remain optimistic, the proof is that Indonesia is still surviving until the recessions of 1998, 2008, and 2020,” explained Tommy.
For information, here are some of the possible effects of a recession:
- Increase in the price of goods
A financial recession is known to affect selling prices, as a result, household expenditures can also increase, while income does not necessarily increase. “As a result, household spending will also increase, while income will not necessarily increase,” said Tommy.
- Decreased income
If Indonesia experiences a global recession, it is likely that the income of most workers will be reduced, even up to massive layoffs. “It is possible to reduce income because there are some adjustments,” said Tommy.
- Business is disrupted
The business or business that you are running may also be disrupted by this financial recession. This is because people’s purchasing power decreases and causes business profits to be smaller.
- High investment risk
Tommy also suggested that mothers who are investing will experience a high investment risk.
“https://finance.detik.com/berita-ekonomi-bisnis/d-6375563/4-dampak-resesi-ekonomi-dan-jurus-buat-menghadapinya.”
