Last year was not an easy period for the economy: high inflation, climate issues and rising geopolitical conflicts.

Toward the end of the year, the US inflation rate, for example, has started to come down, although it is still far from the target set by the Fed at 2%. In response, many central banks imposed a tight monetary policy by raising interest rates, bringing some to their highest level since the global financial crisis in 2008-2009.

Russia's war with the Ukraine and conflicts in the Middle East are adding pressure to the global economy. Oil price surged to record levels amid the war between Israel and Hamas. Moreover, the el Nino weather phenomenon has caused havoc in global food productions, which inflated food prices.

Indonesia's performance in 2023 was relatively better than some of its peers. The government predicte GDP growth of 5,05% this year, slower than the 5,31% expansion recorded in 2022. Such growth put Indonesia in third place among the G20 countries, behind China and India.

How about 2024? Will the challenges we see persist throughout the year. Will there be more issues and how are they going to affect the largest economy in Southeast Asia. How do the government, and the central bank, deal with those challenges? What policies will be in place to ensure the economy can sustain growth, and expand faster than last year? These are some of the questions to be discussed in Bloomberg Technoz Economic Outlook for 2024.

Joko Widodo will end his 10-year leadership this year and a new president will take over on October 20, 2024. During his administration, the President has successfully steered Indonesia through problems including the pandemic, while maintaining economic and political stability.

Although President Jokowi's own target of 7% GDP growth per year has never been reached, the economy still expanded roughly around 5% annually since 2014, when he first took office, supported by his investor-friendly policies. GDP only contracted in 2020, at the height of the pandemic, but so did many of the other economies.

Many of the global problems still persist in 2024 and this could derail the path of Indonesia's economy, while the elections add another layer of challenges faced by the country this year.

How should the new government tackle these challenges? These are questions to be discussed in Bloomberg Technoz Economic Outlook for 2024.