- The US economy showed strong GDP growth in Q1 2024, driven by personal and government spending, while manufacturing contracted in August with a PMI of 47.9, signaling weaker demand and a potential slowdown in production. Meanwhile, the Federal Reserve implemented a 50-bps rate cut in September to support growth amid inflation stabilization and slowing job market conditions.
- In Q2 2024, Eurozone GDP grew by 0.6% YoY, driven by improved trade terms and energy price declines, although Germany’s economy remained weak due to its energy dependence. Meanwhile, Eurozone inflation in August rose slightly to 2.8%, driven by core inflation in services, and the ECB responded with a 25-bps rate cut to 3.50%, aiming to balance inflation control with economic growth stimulation.
- In Q3 2024, China’s GDP growth is expected to slow to 4.4% YoY, down from 4.7% in Q2, due to weak domestic demand and persistent issues in the property sector. Modest government interventions, such as reduced mortgage rates, have had limited impact. Inflation rose slightly to 0.6% in August, driven by a 2.8% rise in food prices, particularly pork and vegetables, while non-food inflation remained weak. China’s Manufacturing PMI also contracted for the fourth consecutive month at 49.1, reflecting ongoing challenges, though high-tech and equipment manufacturing sectors showed some resilience.
- Indonesia’s economic growth in Q2 2024 was 5.05% YoY, slightly down from 5.11% in Q1, driven by strong household consumption and exports, but moderated by slow government spending growth. Inflation in August 2024 was 2.12%, within the central bank’s target, with deflation occurring on a monthly basis due to falling food and communication prices.
- In 2024, IFG Holding’s subsidiaries are expected to face varied impacts from macroeconomic changes. Inflation is likely to increase claims and technical reserves for Jasindo and Jasa Raharja, while enhancing RBC for Askrindo and Jamkrindo. A weakening exchange rate reduces claims and RBC across subsidiaries. Meanwhile, an increase in the BI rate could reduce liquidity and premiums for some companies but improve RBC stability. The overall outlook indicates challenges in managing claims and liquidity, especially for Jamkrindo and Jasindo, requiring careful risk mitigation

Toward Stronger Financial Industry in Indonesia