Economic Overview (Q1 2025)

Bali’s economy continued its robust rebound into early 2025, building on the strong recovery of 2024. In Q4 2024 Bali’s GDP grew 5.19% year-on-year (yoy), outpacing Indonesia’s national growth of 5.02%. For 2024 overall, Bali’s economy expanded by 5.48%, exceeding the national rate of 5.03%. This growth was fueled by a surge in tourism-related services and investment. Notably, international tourist arrivals in 2024 jumped 17.65% yoy, boosting Bali’s exports (mostly tourism services) and helping drive the recovery. Investment also rose 4.19% yoy in late 2024, aided by the completion of infrastructure projects.

Key economic indicators show a healthy trajectory. Employment has improved dramatically as tourism reopens – Bali’s open unemployment rate was just 1.87% in Feb 2024, down from 3.73% a year prior (an extremely low level compared to the national unemployment around ~5%). Inflation has been subdued: Indonesia saw record-low inflation at the start of 2025 (only 1.03% annual in March), partly due to government utility price interventions. Bali’s inflation has similarly remained within target, helping preserve consumer purchasing power. The low inflation environment prompted Bank Indonesia to cut interest rates in Jan 2025 to 5.75% (down 25 bps) to support growth, a notable shift toward monetary easing amid global uncertainties.

Overall, Bali entered Q1 2025 with significant momentum. Bank Indonesia’s Bali office projected continued strong growth in Q1 2025, bolstered by the winter holiday season, Lunar New Year, Nyepi Day (Balinese New Year), and late-March Eid al-Fitr celebrations fueling tourism and spending. Policymakers are focusing on sustaining this growth by strengthening labor-intensive sectors, improving supply chains to control inflation, expanding access to finance, and accelerating digital payments adoption. The economic outlook remains optimistic, with officials emphasizing collaboration on maintaining a “green, resilient, and prosperous” Bali economy.