Medan City Experienced the Worst Economic Contraction in North Sumatra in 2020

Medan City experienced the largest economic contraction compared to other regencies/cities in North Sumatra. The Central Bureau of Statistics (BPS) recorded a Gross Regional Domestic Product (GRDP) at constant 2010 prices (ADHK) of minus 1.98%, reaching Rp 153.67 trillion in 2020, down from Rp 156.78 trillion the previous year.

BPS assessed that Medan City's economy slumped due to the Covid-19 pandemic. This resulted in a contraction of the construction sector's GRDP by 5.22%, reaching Rp 29.63 trillion. Similarly, the GRDP of the transportation and warehousing sector experienced negative growth of 12.55%, reaching Rp 8.48 trillion compared to Rp 9.69 trillion the previous year.

The next deepest contraction in GRDP among regencies/cities in North Sumatra Province was Pematang Siantar City, at 1.89%. This was followed by Binjai City with negative growth of 1.83%, and Deli Serdang Regency and Sibolga City at 1.78% and 1.36% respectively.

Dairi Regency experienced negative growth of 0.94% in its GRDP in 2020 compared to the previous year. This was followed by Mandailing Natal Regency with negative growth of 0.94%, and Langkat Regency with a contraction of 0.86%. Similarly, Karo Regency and Tapanuli Tengah Regency experienced contractions of 0.8% and 0.76% respectively.

Of the 33 regencies/cities in North Sumatra Province, 19 experienced GRDP contraction. The remaining 14 regencies/cities recorded growth last year.