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Household Consumption Distribution Reaches Lowest Level in 12 Years

Viva Budy Kusnandar 14/11/2022 18:10 WIB

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Household consumption distribution in the third quarter of 2022 reached only 50.3% of the national GDP, the lowest in the last 12 years.

Household Consumption Component Distribution to National GDP (Q1 2010–Q3 2022)

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Household Consumption Component Distribution to National GDP (Q1 2010–Q3 2022)

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Household consumption remains the mainstay of the national economy from the expenditure side. In the third quarter of 2022, more than half of Indonesia's gross domestic product (GDP) came from household consumption.

BPS reported that national GDP reached Rp5.09 quadrillion in the third quarter of 2022. Of this amount, household consumption expenditure reached Rp2.56 quadrillion or 50.3%.

Although still dominant in GDP, the proportion of household expenditure has shown a downward trend since the second quarter of 2020, reaching its lowest level in the third quarter of 2022, as shown in the graph.

The declining role of household consumption is due to the increase in the export component of goods and services, influenced by the rising prices of Indonesia's main export commodities such as coal and palm oil.

Compared to the third quarter of 2021, household consumption in the third quarter of 2022 has fallen by 271 basis points (bps). Meanwhile, the distribution of exports of goods and services increased by 376 bps to 26.23% of total GDP.

Amidst the threat of a global economic recession, the national economy still grew by 5.72% (year-on-year/yoy) in the third quarter of 2022. Household consumption grew by 5.39% (yoy).

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Household Consumption Distribution Reaches Lowest Level in 12 Years

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