Indonesia Recorded Highest Economic Growth in 17 Years
Indonesia Recorded Highest Economic growth up to 7,07% in the second quarter of 2021. This is the highest growth since the fourth quarter of 2004. Indonesia Central Statistics Bureau (BPS) noted that all business sectors experienced positive growth. The highest growth is recorded by the transportation and warehousing sector which grew by 25,10% year on year. This sector previously was the one which suffer the deepest contraction in 2020, notably in the second quarter of 2020 with -30,84% year on year. Another sector that also recorded the extra ordinary growth is the food and beverage accommodation sector with 21,58% year on year. Just like transportation and warehousing, this sector experienced a deep contraction of 22,02% in the second quarter of 2020.
On the expenditure component, the export of goods and services grew by 31,78% year on year. This component was followed by imports of goods and services which also grew by 31,22% year on year. As for the household consumption, this component only recorded modest growth of 1,72%. This increase shows that the economy of Indonesia is improving after experienced pandemic induced recession in 2020. Previously in 2020, the Indonesian economy contracted by 2,07%. The deepest contraction occurred in the second quarter of 2020, which was 5,32%.
Projection for 2021
Indonesia Recorded Highest Economic – The Indonesian economy is projected to bounce back from the contraction in 2020. The World Bank in June projected the economic growth will reach 4,4%. The International Monetary Fund (IMF) in July projected the growth in 2021 to be 3,9%. The implementation of the Enforcement of Restrictions on Community Activities (PPKM) since July 3 is expected to slow the economic performance in the third quarter of 2021. Economist from Economic.
Community Research (LPEM) University of Indonesia (UI) Teuku Riefky estimates that growth in the third quarter will only be around 2-3% year on year. In the meantime, the government of Indonesia has prepared some measures to stimulate and accelerate the economic recovery. The government continues to accelerate the vaccination program, where as of August 8, 2021, the first vaccine recipients have reached 50 million people.