The central government has admitted that Bali’s GDP is still heavily affected by the pandemic though other Indonesian provinces have begun to see economic recovery.
The Minister of Finance, Sri Mulyani, confirmed that the economic growth rate in Bali is still on the negative end through 2021 because of the Covid-19 pandemic that heavily affected the tourism sector.
“Although provinces in Java and Sumatra recorded an increase on their GDP in 2021, Bali hasn’t seen any positive development on their economic growth,” Sri Mulyani said on Wednesday (9/2).
The pandemic and lack of tourism have made the island face a significant financial crisis in 2021, causing the GDP to drop by minus 2.47 percent. However, Sri Mulyani admitted that this was already an improvement from 2020 when the province showed minus 9.3 percent on its GDP.
“This situation is caused by the island’s dependancy on the hospitality industry, which is still paralyzed,” she added.
Sri Mulyani is optimistic that Bali’s GDP will grow in 2022 as the central government begins to lose its strict travel requirements for international travelers.
She also hopes that the growth of Bali’s GDP can reduce the unemployment and poverty rates on the island.
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