The economic growth of East Java in the second quarter of 2023 has been recorded at 5.24% year on year (y-o-y), according to data from the Central Statistics Agency (BPS). This growth rate surpasses the national economic growth rate of 5.17% during the same period. In terms of quarter to quarter (q-to-q), East Java's economy also grew by 2.66% in the same period last year, recording the highest growth among all provinces on the Java Island. In the second quarter of 2023, East Java significantly contributed to the national economic growth at 14.45%. Additionally, its contribution to the economy of Java Island stood at 25.23%. The recorded economic growth in East Java is supported by the increased economic activities of the community, which in turn drove domestic demand, trade volume, and stimulated the services sector. The transportation and warehousing sector was the one experiencing the most significant growth at 13.90 percent.
Another factor contributing to the growth of East Java's economy is the momentum created by religious holidays and extended school breaks along with government activities. These extended breaks have indeed boosted economic activities, especially in the transportation sector in East Java. Furthermore, the improved performance of investment in the Gresik Special Economic Zone has also become a driving factor for East Java's economy. This includes the three other main sectors propelling the economy: manufacturing, contributing 30.17%; trade, 18.75%; and agriculture, 11.82%. The positive growth in the second quarter of 2023 serves as a strong foundation for East Java to accelerate its economic momentum until the end of the year 2023.
