As reported in the authoritative Indonesia Digest, Bali economist, Prof. Nyoman Erawan has recently predicted that Bali's rate of economic growth may reach 6% in 2007.
According to Erawan, while the island's economy is gradually improving, such growth remains precarious when dependent solely on business trends in the tourism sector. In comments carried in the Bali Post, He warned that Bali must develop other sectors, such as agriculture, which can provide a significant contribution to public welfare.
The respected economist from Bali's Udayana University also predicted that Bali's economy will continue to grow a rate above 6% in 2008 and beyond, as long as the province's economic stability is guarded and other sectors beyond tourism are developed.
The Director of Bank Indonesia in Denpasar, Bali, Ketut Sanjaya, agrees with this assessment. Compared to neighboring provinces, Bali recently achieved a 5.27% economic growth rate while in adjoining West Nusatenggara the economy expanded by only 1.65%, East Nusatenggara by 4.96% and East Java by 5.5%.
Sanjaya is confident that Bali's economy will continue to improve this year, although still dominated by the trade, hotel and restaurants, transportation and communications sectors.
Bali's banking sector also improved standing at Rp. 24 trillion (approximately US$2.6 billion) in assets until June 2007, up from Rp. 15.63 trillion (approximately US$1.7 billion) at the same time last year. Growth remains dominated by consumption (at 42%) compared to investments which reached only 4%, according to the Bank Indonesia official.
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