JAKARTA (TheInsiderStories) — Good morning! The International Monetary Fund (IMF) reported about damage that could be impacted by no-deal Brexit. If the United Kingdom (UK) leaves European Union (EU) without no deal, its economic growth could fall by 1.4 percent in the first year of implementation.
Then the hit could increase to 3.5 percent in 2021. A more chaotic exit, with heightened border disruptions and a greater tightening of financial conditions, could have a more severe impact, the study found.
In the IMF’ latest world economic outlook, prediction for UK economic growth was cut from 1.5 percent to 1.2 percent. The agency also highlighted that a no-deal outcome would also pose a risk to the rest of the world. Global GDP would decrease by 0.2 percent in 2021. Meanwhile, EU GDP would be 0.5 percent lower.
To negotiate Brexit, UK Prime Minister Theresa May has met Germany Chancellor Angela Merkel, EU’ most powerful leader and French President Emmanuel Macron to seek support for a new Brexit delay a second time, from April 12 to June 30.
While, her ministers tried to break the deadlock in London at crisis talks with the opposition Labour Party. The worst case, without an extension, UK is due to leave the EU on Friday, with no transition arrangements to cushion the economic shock.
Otherwise, EU introduced a platform to help Southeast Asian countries in handling issues related to trade and investment between countries, called ASEAN Solutions and Settlements for Investments, Services and Trade (ASSIST). The EU helps from expertise to financing the platform.
The platform can cover several actions related to tariff and non-tariff impacted goods, services in cross-border areas, also investment limitation measures in various ASEAN integration sectors. It is expected to be a medium in facing bilateral issue. Any issues will be responded and forwarded to the destination country in 2 weeks.
From domestic side, Bank Indonesia along with ASEAN central banks planned to establish a QR code-based real-time payment system. It aims to create security, consumer protection, and financial system stability. The region central banks officials are now discussing the integration system, also relate value payment with consumers security protection aspect.
Yesterday, Indonesia government absorbed Rp15.7 trillion (US$1.11 billion) of State bond from an auction. It is almost half of the total offering at Rp31.84 trillion. From seven series offered, FR0078 was the most demanded. The 10 years maturity FR0078 has 7.65 percent yield.
The yields vary from 5.79 percent to 8.48 percent. FR0068 has 8.06 percent yield, FR0076 has 8.48 percent yield, FR0077 has 7.13 percent yield, and FR0079 has 8.2 percent yield. Moreover, SPN12200410’s yield is 6.02 percent and SPN03190710 is 5.79 percent.
Indonesian Rupiah decreased slightly by 0.03 percent. While Jakarta Composite Index closed gaining 0.91 percent to 6,484.34 with Rp596.65 billion foreign inflows.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia