The Indonesian economy recorded a growth of 5.11% year on year (yoy) in the first quarter of 2024, according to data from the Central Statistics Agency (BPS). This growth marks an increase from the 5.04% growth in the fourth quarter of 2023 and also surpasses the 5.04% growth in the first quarter of 2023. Amalia Adininggar Widyasanti, Acting Head of the Central Statistics Agency, highlighted that the primary drivers of economic growth in the first quarter of 2024 were household consumption and gross fixed capital formation (GFCF) or investment. Household consumption grew by 4.91% yoy, remaining the primary contributor to economic growth, accounting for 54.93% of total expenditure. Household consumption growth was spurred by Ramadan, leading to increased consumption of food and beverages, particularly evident in higher transportation and communication spending. Additionally, the growth in household consumption was supported by increased occupancy rates in hotels and restaurants.
GFCF grew by 3.97%, contributing 29.31% to economic growth, primarily driven by growth in all categories of capital goods except vehicles. Positive growth in GFCF was particularly notable in building and construction. Both household consumption and GFCF contributed significantly to GDP, with 54.93% and 29.31% respectively. Exports grew by 0.50% yoy, contributing 21.37% to total GDP, while imports increased by 1.77%, but with a decreased contribution of 19.77%. Government consumption also grew positively by 19.90%, mainly driven by increased spending on goods and services as well as personnel, largely due to the implementation and supervision of the 2024 elections. This component contributed 6.25% to total GDP. Non-Profit Institutions Serving Households (NPISH) consumption grew by 24.29%, primarily due to increased activities related to elections and the Ramadan period. Looking at the sources of growth, household consumption contributed the most to economic growth in the first quarter of 2024, at 2.62%. Other contributors included GFCF at 1.19%, government consumption at 1.06%, other components at 0.47%, and net exports contracting by 0.23%.
