Back to Pre-Pandemic Levels, Bali’s Economic Growth Soars by 5.7% Throughout 2023

Bali's Hindu Community Commemorates Galungan with Fervent Devotion (photo: Unsplash - Wisnu Widjojo)

Bali Bounces Back! The Island of Gods Bali has fully recovered after being the province most affected by the Covid-19 pandemic. The Central Statistics Agency (BPS) reports a noteworthy economic growth of 5.7% throughout the entirety of 2023. This achievement not only surpasses the 2019 figures but also outshines the 2022 growth rate, which stood at 4.84% (YoY).

Endang Retno Sri Subiyandani, Head of BPS Bali, attributes this impressive economic rebound to the resurgence of the island’s tourism sector. Sectors directly linked to tourism, such as accommodation and food services, played a pivotal role in this recovery, contributing a substantial growth rate of 2.62% (YoY). Additionally, transportation and warehousing saw a commendable increase of 1.35%, while financial and insurance services added 0.60% to the overall growth. Wholesale and retail trade, manufacturing, and other sectors also contributed to this economic upswing.

“Acknowledging the significant role of accommodation and food services, Bali’s economic growth in 2023 is notably influenced by the approaching normalcy of the tourism sector. This has led to a resurgence in various businesses, including accommodation, food services, and transportation,” explained Endang during a press conference on Monday (5/2/2023).

Examining the expenditure aspect, foreign exports emerged as the primary driver of Bali’s economic growth in 2023, constituting an impressive 19.43%. Household consumption followed suit with a growth rate of 3.14%, complemented by government spending (PMTB) at 0.91%, and non-profit institutions serving households (LNPRT) at 0.21%.

The recovery of Bali’s economy is further emphasized by the increased per capita Gross Regional Domestic Product (GRDP), reaching Rp62.29 million in 2023. This achievement not only surpasses pre-pandemic levels but also reflects the island’s resilience in the face of adversity.

Economist Ida Bagus Raka Suardana from the National Education University Denpasar elucidated that the 5.7% economic growth in Bali is a reasonable outcome, attributed to the revitalization of the tourism sector. This sector, known for its substantial impact on the economy, witnessed a surge in foreign and domestic tourist arrivals.

“Bali’s economic growth of 5.7% is indeed reasonable. Post-pandemic, there has been a noticeable increase in the mobility of tourists and guests compared to the previous year. The resurgence of flights to Ngurah Rai Airport is a testament to this positive trend,” stated Suardana.

Looking ahead, Suardana expressed optimism, projecting that if the current situation persists without any disruptive factors, Bali’s economy in 2024 could experience a growth rate exceeding 6%. This projection aligns with the target of welcoming 7 million foreign tourists to Bali, reaffirming the tourism sector’s position as the primary catalyst for the island’s economic growth, contributing a significant 54% to the tertiary sector’s overall share of 68%.”