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Projected by the World Bank, global economic growth is expected to slow until 2026. These projected results are certainly not good news for developing countries, including Indonesia, which are expected to face tougher economic conditions.
Not only that, these movements are likely to affect the lifestyles, careers, and finances of Millennials to Generation Z. From intensifying job competition, financial uncertainty, to lifestyle changes and consumption, young people are advised to prepare from now on.
But, is there any way that Millennials and Generation Z can anticipate this? Come on, check out the explanation below.
The slowdown in global economic growth is due to several reasons such as financial instability and the presence of increased geopolitical risks. Not only that, the COVID-19 pandemic that occurred several years ago is still damaging the overall global economic recovery.
Meanwhile, the World Bank has identified that Indonesia's 2024 economic growth is expected to slow due to two internal and external factors. Structural problems such as political uncertainty, changes in economic policy, and money market instability are the main factors causing the slowdown in Indonesia's economic growth.
But, is it true that this economic slowdown will last into the coming year and will the impact be that big?
Based on the World Bank's indications, a slowdown in global and Indonesian economic growth is expected to occur until 2026. Not to mention, this projection is estimated to have an impact on various sectors of industry, trade, and even investment.
If you don't already know, the World Bank even advises governments and businesses in Indonesia to prepare mitigation measures and more responsive economic policies. Whether it's in the form of structural reforms or a focus on innovation, improving coordination as well as ensuring efficiency and effectiveness is important enough to do.
What about Millennials and Generation Z? Overall these two generations will feel quite significant changes in financial and employment aspects. Here are some examples:
The above changes are thought to also affect the mental state of Millennials and Generation Z. During this period, the level of financial stress is expected to increase than ever before.
Can Millennials and Generation Z just shut up? Of course you can make some effort like the following.
It is estimated that there will be many changes due to slowing economic growth in 2024. Millennials and Generation Z could make some efforts to deal with the slowing economy in the following ways:‍
Such as by taking courses, certifications, and being sure to stay up-to-date on technological developments to financial trends. If you don't want to miss the latest financial news, make sure you follow Finetiks Instagram account here.
Look for a side job or a part-time job that can increase your income. You can also explore small businesses or independent businesses according to your skills and interests.
Handle debt carefully. Focus on unproductive debt reduction and look for debt restructuring options if needed. Make sure you continue to maintain and control your financial dependents.
This year, try to prioritize building an emergency fund. Save emergency funds can provide financial security amid economic uncertainty. If you are confused about how to allocate emergency funds, you can immediately use the Finetiks application available at Google Play and App Store.
Instead of just saving and managing finances, create a structured financial plan and do short- and long-term identification. Before investing, make sure you understand the risk profile and choose an investment instrument that fits between the objective and the risk.
In addition to the five ways above, Millennials and Generation Z are advised to routinely conduct periodic financial monitoring and evaluate financial plans. You can perform monitoring with the Finetiks application, including receiving direct advice and input from AI technology.
By taking the steps above, you can be financially secure, build a sustainable career, and be better prepared to face the challenges of the 2024 economic slowdown.
