Rising Commodity Prices Support South Kalimantan's Economy in Q3 2021

South Kalimantan (Kalsel)'s economy grew by 4.82% to Rp 34.87 trillion in the third quarter of 2021 compared to the third quarter of 2020 (year-on-year/yoy), according to the Gross Regional Domestic Product (GRDP) at constant 2010 prices.

Meanwhile, according to the Gross Regional Domestic Product (GRDP) at current prices, Kalsel's economic growth reached Rp 49.84 trillion in the third quarter of 2021.

The increase in commodity prices in the international market, such as coal, palm oil, and rubber, contributed to the growth of Kalsel's exports in the third quarter of this year. In addition, the peak rice harvest in Kalsel also supported the province's GRDP.

From the business sector perspective, the growth of the mining sector's GRDP by 5.4% (yoy), the processing industry by 3.23% (yoy), and the agricultural sector by 0.71% (yoy) were the drivers of Kalsel's economic growth in the third quarter of this year.

From the expenditure side, the growth of household consumption expenditure by 4.05% (yoy), gross fixed capital formation (GFCF) by 1.47% (yoy), and exports of goods and services by 23.64% (yoy) fueled Kalsel's economy throughout July-September 2021.

Kalsel's economy experienced a contraction for four consecutive quarters, starting from the second quarter of 2020 to the first quarter of 2021. The implementation of restrictions on community social activities to curb the spread of the coronavirus caused Kalsel's GRDP to even contract by 4.93% in the third quarter of 2020. In the last decade, Kalsel's economy recorded its highest growth of 7.79% (yoy) in the fourth quarter of 2021.