Some Business Sectors Considered Able to Survive Global Recession

VIVA – Several world institutions predict that 2023 will be a year of recession for several countries. In fact, the World Bank just cut its projection of global economic growth to 1.7 percent in 2023.

Executive Director of the Center of Economics, and Law Studies (Celios), Bhima Yudhistira Adhinegara says that some business sectors will survive and business sectors are going to be affected.

"Sectors that can survive (are) food and beverages because of basic needs. Then the recreation, hospitality, and transportation sectors supporting tourism in line with the increasing public interest in traveling after the revocation of restrictions on community activities," Bhima Yudhistira stated when called by VIVA on Wednesday, January 11, 2023.

Bhima continued, telecommunications services are also expected to grow, although growth is slowing down compared to the peak of the COVID-19 pandemic. In addition, the skin care and body care business is predicted to rise during the recession phase.

"There is a lipstick effect theory where during a recession, women will spend more on body care as an affordable entertainment," Bhima said.

As for the sectors affected by the recession, including construction services, financial services, and home furnishings, "The affected business sectors are construction services, financial services, export-oriented industries including apparel and footwear, and furniture," Bhima added.

Meanwhile, Segera Institute Economist, Piter Abdullah said that Indonesia 2023 will not experience a recession. Because the Indonesian economy in 2023 is expected to continue to grow.

"Indonesia is believed to be one of several countries that will grow positively in 2023," Piter Abdullah explained.

Indonesia's economic growth is projected to be 4.8 percent in 2023 by the Asian Development Bank (ADB). This figure was recorded down from the initial projection of 5.4 percent, which was later corrected again to 5 percent.