Bali's Economy Falls by 10.98%
The impact of the Covid-19 pandemic has put heavy pressure on the Balinese economy. The Central Statistics Agency (BPS) noted that in the second quarter of 2020, the Balinese economy contracted by 10.98% in comparison with the previous year.
This number is much lower than in the first quarter when Bali's economy fell by 1.14%. Compared to the growth of the national economy, Bali almost doubled down, because, in the second quarter, the national level lowered only by 5.32%.
Head of Bali Province BPS Adi Nugroho stated that the deepest negative growth was the deepest so far.
Only three business fields recorded positive growth, namely information/communication, health services, and real estate.
Meanwhile, the transportation sector and the provision of food and drinks contracted by 39.48% and 33.10%. These two sectors are closely related to tourism which forms the backbone of Bali's economy (around 58% of Bali's economy depends on tourism).
The demand for electricity, especially in hotels, during this pandemic also decreased, causing the electricity, gas and water sector to fall by 21.04%. This was due to the negative growth of foreign tourist arrivals, which reduced by 99.97% in comparison with the last year. This process was is in line with the closure of international flights to and from Bali in anticipation of the spread of Covid-19.
All components of expenditure grew negatively with the deepest contraction in the component of foreign exports (-93.02%). The performance of household consumption and investment also contracted, respectively by 3.57% and 15.48%.
Imports also contracted by 89.68% in line with the deterioration of tourism performance, reducing demand for imported foodstuffs and the downward pressure on the rupiah exchange rate