Contraction of Bali’s Economy Predicted

Hopes to expand a growing domestic market and reopen Bali to international tourism in July 2021 were abandoned in the face of a sudden surge in new COVID-19 cases and the implementation of measures connected to the Emergency Limitations on Public Movement (PPKM-Darurat) policy. With the islands of Java and Bali in lockdown until at least 20 July 2021, it is unlikely that Bali will enjoy even the modest economic improvement projected year-on-year for Q3 of 2021.

Professor Dr. IB Raja Suardana

Quoted by, Professor Dr. IB Raja Suardana, a leading economist from The National Education University (Unidiknas), says: “If seen from the aspect of economic growth targets of 6% or 7% in Q2 of 2021 for Bali, might not achieve these targets in current conditions.” 

Suardana fears the economy will contract in Q3 due to the impact of shutdown measures that have brought much of the nation’s economy to a standstill.

Continuing, the respected economist questioned the viability of the performance of Bali’s economy in Q2 of 2021, now expected to contract by 9.85%. Suardana expects the final figures for year-on-year contraction will be between 8% to 9% and quarter-on-quarter of between 5% to 6%.

In closing, the economist reminded the public to limit their social interactions and prevent the spread of COVID-19 in Bali.

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