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BPS: 5.31 percent economic growth driven by household consumption

Tempo - February 7, 2023

Moh Khory Alfarizi, Jakarta – Head of Statistics Indonesia (BPS) Margo Yuwono stated in a virtual press conference said that the country's economic growth in 2022 reached 5.31 percent, which is a significant bump compared to 2021 which recorded 2.61 percent growth. BPS said that the growth is supported by household consumption.

"Household consumption was able to grow 4.93 percent [yoy] in 2022, which is better than 2021 which only grew 2.02 percent," said the Head of BPS Margo Yuwono on Monday, February 6, 2023.

Apart from household consumption, gross fixed capital investment (PMTB), or physical investment, also contributed 1.24 percent to the overall growth. Net export amounted to 0.81 percent, while other aspects such as government consumption and consumption of Non-Profit Institutions Serving Households/LNPRT contributed 0.65 percent.

According to Margo, the recovery of mobility will encourage business activities and increase people's income. This was also shown by the increase in Article 21 income tax (PPh) of 18.36 percent.

As reported earlier, BPS said that Indonesia's public transportation passenger traffic recorded a cumulative and year-on-year growth throughout 2022. The most significant increase came from international tourist visits that rapidly increased by 384.12 percent (yoy) and 251.28 percent cumulatively.

Yuwono stated there was a rise in mobility as the coronavirus pandemic has seemingly been handled positively, which is evident in the average hotel room occupancy that grew 6.2 percent (yoy) and 11.54 percent cumulatively.

Source: https://en.tempo.co/read/1688341/bps-5-31-percent-economic-growth-driven-by-household-consumptio