Bali's Economy Contracts Again in the Third Quarter of 2021

The Central Statistics Agency (BPS) reported that Bali's economy contracted by 2.91% in the third quarter of 2021 (year-on-year/yoy). This contraction occurred after a period of positive growth of 2.88% (yoy) in the second quarter of 2021, marking a recovery from recession.

The implementation of emergency community activity restrictions (PPKM) in the Java-Bali region is suspected to have negatively impacted Bali's economic activity across several business sectors. Of the 17 business sectors that make up the Gross Regional Domestic Product (GRDP), 11 experienced contraction in the third quarter of 2021.

The deepest contraction was recorded in the transportation and warehousing sector, at minus 16.03%. This was followed by contractions in the accommodation and food service sector (minus 8.47%) and the corporate services sector (minus 7.53%).

Six business sectors recorded positive y-o-y growth in the third quarter of 2021. The highest growth was recorded in the health and social services sector at 7.29%, followed by the electricity and gas supply sector at 2.74%, and the construction sector at 0.84%.

From the expenditure side, negative growth was seen in foreign imports, which contracted by 52.02%. This was followed by household consumption expenditure (PK-RT) at minus 1.09%.

Other expenditure components showed positive growth. The highest increase was in government consumption expenditure (PK-P), at 3.73%, followed by Non-Resident Private Expenditure (LNPRT) at 2.75%, Gross Fixed Capital Formation (PMTB) at 1.15%, and foreign exports at 0.49%.