Household consumption becomes highest source of economic growth: BPS

Household consumption becomes highest source of economic growth: BPS

Head of Statistics Indonesia (BPS) Margo Yuwono while highlighting the 2022 Quarter II Economic Growth report in Jakarta, Friday, August 5, 2022. (ANTARA/Agatha Olivia V/rst)

Jakarta (ANTARA) - Household consumption was the highest source of Indonesia's economic growth, or gross domestic product (GDP), in the second quarter of 2022 according to expenditure, which was 2.92 percent, Statistics Indonesia (BPS) Head Margo Yuwono stated.

"As the main contributor to economic growth in the second quarter, which grew 5.44 percent as compared to the same period last year (year-on-year/yoy), household consumption grew very impressively at 5.51 percent (yoy)," Yuwono noted while highlighting the 2022 Quarter II Economic Growth report in Jakarta, Friday.

The growth in household consumption was also apparent as compared to the first quarter of 2022 during which it was recorded at 4.34 percent (yoy) on account of the purchasing power of the lower class of society supported by social assistance.

In addition, an increase was recorded in shopping activities of the upper middle class, especially during Ramadan and Eid al-Fitr, he pointed out.

After household consumption, Indonesia's highest source of economic growth according to expenditure was net exports or the value of exports minus the value of imports, at 2.14 percent.

Goods and services exports became the component, with the highest growth in distribution and GDP growth according to expenditure since it managed to increase by 19.74 percent (yoy). Meanwhile, imports grew by 12.34 percent (yoy).

Furthermore, Yuwono remarked that the gross fixed capital formation (PMTB) was an investment indicator as the third-highest source of Indonesia's GDP growth in the second quarter of this year, at 0.94 percent.

"PMTB grew moderately by 3.07 percent (yoy) in the second quarter of 2022, driven by growth in capital goods (machinery, vehicles, buildings, and other construction) as well as an increase in the realization of foreign investment (PMA) and domestic investment (PMDN)," he noted.

Meanwhile, contribution of other expenditure components as a percentage of the GDP growth was -0.56 percent, specifically government consumption that contracted 5.24 percent (yoy), and consumption of non-profit institutions serving households (LNPRT) that increased by 5.04 percent, Yuwono revealed.

The contraction in government consumption in the second quarter of 2022 was caused by a decrease in the realization of personnel expenditures and expenditure on goods and services from the State Budget. 

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