Economic growth

Bali Economic growth

By the end of 2018, a number of people expressed their optimism regarding the economic condition of Bali in 2019. Growth is believed to be above 6 percent. Towards the end of the year, growth was not as high as predicted. The highest rate of economic growth is only 5.69 percent.

Optimism about the Balinese economy growth was high in 2019, based on several considerations. Among other things were the effect of organizing the IMF-WB Annual Meeting which was followed by boost in tourist arrivals. The massive infrastructure development, especially the Mengwi-Singaraja shortcut construction, was also mentioned to be the trigger for economic growth.

The tourism sector, as the main support for Bali's economy, is not very encouraging. The growth of foreign tourist arrivals to Bali has even been recorded as negative. While in general people feel that economic conditions are still far from encouraging.

Based on the latest release of Bali's Central Statistics Agency (BPS) data, Bali's economic growth in the third quarter of 2019 was only 5.34%. This growth slowed compared to the same period the previous year which recorded a growth of 6.15% (yoy).

The retail sector shows conditions that are not so encouraging. 2019 real sector growth is very small compared to previous years.

DPD Chair of Aprindo Bali A.A. Ngurah Agung Agra Putra said that the conditions in the field in the household consumption sector which contributed 47.57 percent to the third quarter GDP of 2019 did not show the reality on the field. In the retail sector, which is closely related to household consumption, it shows a slowdown.

Almost all categories of FMCG (fast moving consumers good) experienced a decline. "Even though 2019 is still better than 2018 which only touched 1 percent," he said.

The decline in the offline retail sector turned out to be not proportional to the increase in value in online transactions. This shows that online influence is very small on offline retail especially in the FMCG category. Thus, rejecting the notion that people's consumption behavior changes to things that relate to leasure (travel / sightseeing) or from offline to online.

Leasure is only enjoyed by the middle-up class (upper middle) but the largest market volume in Indonesia is supported by middle-down (middle to lower) class, and their consumption is still dominated by the fulfillment of daily needs. "So this assumes that, they (middle down) do not shop because they do not have money," he said.

Agra Putra also revealed, that the tours conducted by the middle-up class, are apparently more carried out outside Indonesia. Especially since domestic ticket prices have become expensive. "So they would rather go outside than travel in the country," he concluded.

 

The source: Bali Post

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