GLOBAL ECONOMIC CONDITIONS
GLOBAL ECONOMY IN 2024
THE ECONOMIC GROWTH OF NORTH SUMATRA
INFOGRAPHICS
Summary of Economic Report – Sumatera Utara Q2 2024
This page provides a concise summary of the economic, financial, and social developments in Sumatera Utara for the second quarter of 2024, covering key areas such as economic growth, inflation, government finance, credit distribution, and employment trends.
Source : Bank Indonesia
| Section | Highlights | Details |
|---|---|---|
| Economic Growth | Sumatera Utara’s economy grew by 4.95% YoY in Q2 2024, driven by increased exports, imports, and investments, with major contributions from agriculture, manufacturing, and construction sectors. | Agriculture supported by higher palm oil production; manufacturing boosted by export recovery. Construction grew due to infrastructure projects, including PON XXI venues and Medan city facilities. |
| Inflation | Inflation decreased to 3.35% YoY in Q2 2024, primarily influenced by food, beverage, and tobacco prices. Seasonal weather disruptions impacted food prices, while global geopolitical issues affected gold prices. | Main inflation drivers included chili, rice, red onion, gold jewelry, and machine-rolled cigarettes. Coordinated actions like National Food Inflation Control (GNPIP) helped moderate the inflation rate. |
| Government Finance | Revenue from the regional budget increased to IDR 6.31 trillion, with higher contributions from local and transfer revenue, although expenditure slightly decreased due to lower operational spending. | Central government spending in Sumatera Utara also rose by 3.69% YoY, with APBN spending reaching IDR 10.97 trillion, except for a minor decline in capital expenditure. |
| Credit Distribution | Credit distribution increased by 8.21% YoY, with low NPL at 1.98%. The credit growth was strongest in household, MSMEs, and corporate sectors, especially in trade and manufacturing. | Household credit rose, buoyed by festive season demand, with balanced lending across micro, small, and medium enterprises. Strong corporate lending seen in trade and manufacturing. |
| Employment & Welfare | Unemployment fell to 5.10%, with improvements in income equality and poverty levels, reflecting economic stability. Urban income disparity remains a concern compared to rural areas. | Poverty declined to 7.99% in March 2024 from 8.15%, and Gini ratio showed improvement. Welfare indices, especially in urban areas, indicated ongoing needs to address income gaps. |
| Future Economic Prospects | Projected growth in 2024 between 4.5-5.3% YoY, driven by household consumption and investment, despite global uncertainties. Inflation is expected to stay within the target of 2.5±1%. | Growth supported by resilient consumption and government efforts in biofuel programs, agricultural productivity, and preparations for the 2024 elections. External risks include geopolitical tensions impacting trade. |