Lowest in Two Decades, The Economic Growth of First Quarter is Only 2.97%

Tuesday, 05 May 2020

Lowest in Two Decades, The Economic Growth of First Quarter is Only 2.97%

JAKARTA. The Central Statistics Agency (Badan Pusat Statistik/BPS) recorded Indonesia's economic growth in the first quarter of 2020, as measured by Gross Domestic Product (GDP) slowing down to 2.97% year on year (yoy). This figure is decreased compared to economic growth in the first quarter of 2019, which was recorded at 5.07% while in the fourth quarter of 2019  amounted to 4.97%. 

Besides this growth is the lowest since the first quarter of 2001, or almost two decades ago. However, according to BPS, the condition in 2001 cannot be compared with current condition, one of which is due to a pandemic factor.

The biggest slowdown occurred in components of government consumption expenditure growth, which grew by -44.02% yoy. Meanwhile, private consumption expenditures grew by -1.97%, The Non-Profit Institutions Serving Households ( LNPRT) -2.10%, Gross Domestic Fixed Capital Formation (PMTB) -7.89%, exports of goods and services -6.37% and  imports of goods and services -11.89%.

Read: Guidelines for Business Activities During Covid-19 Pandemic

If viewed by business field, the agricultural sector recorded only grew by 0.02%, mining and quarrying 0.43%, manufacturing industry 2.06%, construction 2.9%, wholesale and retail trade and repair of motor vehicles and motorcycles 1.6%, other 5.62%. Then based on location, the largest contribution of growth is still dominated by Java island with a contracubution of 59.14% and grew by 3.42%.  

Furthermore, the island of Sumatra has a contribution of 21.4% grew by 3.25%, Kalimantan contributed 8.12% grew by 3.83%, Maluku and Papua contributed 2.20% and grew by 2.85%. Bali and Nusa Tenggara, they contributed 2.95% grew by 0.994%.

According to BPS the slowdown that occurred this time was quite deep, it was due to the decline in Indonesian exports as a result of the outbreak of the 2019 Corona Virus Disease (Covid-19) pandemic. In particular, Indonesia's exports to China which accounted for 15%, in the first quarter of 2020 contracted by 6.8%.



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