West Sumatra's Economy Grew by 3.29% in 2021

The Central Statistics Agency (BPS) recorded that West Sumatra's economy, based on the nominal Gross Regional Domestic Product (GRDP), reached Rp252.75 trillion in 2021. This achievement is the highest in the last decade.

Measured by the 2010 constant price GRDP, the economy of the province known for the Malin Kundang story grew by 3.29% to Rp174.99 trillion in 2021 compared to the previous year.

West Sumatra's economic growth in 2021 was better than in 2020, which experienced a contraction of 1.62% due to the impact of the Covid-19 pandemic.

However, West Sumatra's growth in 2021 was still lower than the national economic growth of 3.69%, and below the pre-pandemic level which grew above 5% in 2019.

From the business sector perspective, the agricultural sector was the largest contributor to West Sumatra's economy, contributing 21.71% to the GRDP. This was followed by the wholesale and retail trade sector with a contribution of 15.55%, and the transportation and warehousing sector with a contribution of 10.3%.

Throughout 2021, the agricultural sector recorded growth of 2.19% compared to the previous year. Similarly, the wholesale and retail trade sector grew by 5.12%, and the transportation and warehousing sector grew by 2.56%.

From the expenditure side, household consumption expenditure was the main driver of West Sumatra's GRDP, contributing 53.88% in 2021. This was followed by gross fixed capital formation (GFCF) at 30.3%.

Household consumption expenditure in 2021 grew by 1.97% compared to the previous year, in line with the increase in social assistance disbursement in West Sumatra.

Meanwhile, foreign exports grew by 53.53% due to the improving economy in the province's main trading partners, such as Pakistan, Bangladesh, and India.

(See also: West Sumatra Poverty Rate as of September 2021 Lowest Since Pandemic)