North Sumatra's Economy Grew by 2.61% in 2021

The Central Statistics Agency (BPS) recorded that the North Sumatra economy, based on the nominal Gross Regional Domestic Product (GRDP), reached Rp859.87 trillion throughout 2021.

Measured based on the 2010 constant price GRDP, the North Sumatra economy grew by 2.61% to Rp547.65 trillion compared to the previous year.

This achievement is higher than 2020, which experienced a 1.07% contraction, but still lower than before the Covid-19 pandemic, where the North Sumatra economy was able to grow above 5%.

From the business sector perspective, the agricultural sector remained the main pillar of North Sumatra's GRDP with a contribution of 22.04% throughout 2021. This was followed by the manufacturing industry with a contribution of 19.52%, and wholesale and retail trade at 18.91%.

The information and communication sector recorded the highest growth, at 6.51% last year compared to the previous year. This was followed by financial and insurance services, which grew by 4.46%, and the electricity and gas supply sector, which grew by 4.93%.

From the expenditure side, the household consumption expenditure component still dominated the North Sumatra economy, at 50.79%. This was followed by gross fixed capital formation (GFCF) with a contribution of 30.56%.

The GFCF component grew by 3.47% throughout last year, the highest compared to other components. This was followed by government expenditure growth of 3.47%, and household consumption expenditure growth of 1.69%.

(See also: Indonesia's Economy Grew by 3.69% in 2021)