Indonesia's Nusa Tenggara Barat (NTB) economy posted strong growth of 7.04% in the fourth quarter of 2022. The agriculture and construction sectors are the main catalysts for this growth, which are expected to continue supporting economic growth in the first quarter of 2023. Rice production is expected to rise heading into the March 2023 harvest season, while an improvement in the construction sector is expected as smelters progress and other infrastructure projects are completed.
Despite the challenges posed by global and domestic economic complexity, NTB's economy is poised to post positive growth of 6.95% y/y in 2022. This economic recovery is expected to continue, supported by a relatively sound financial system and fostered stability. In the first quarter of 2023, NTB's economy is expected to grow by 4.9% to 5.4% year-on-year. However, inflation remains a concern as the NTB recorded 5.23% year-on-year inflation in March 2023, just above the national rate of 4.97%. Deflation in March 2023 was -0.05% m/m. This is mainly due to the fall in food and tobacco prices following the fall in rice prices during the harvest season. Efforts to contain inflation must therefore continue to reach the 3 ± 1% y/y inflation target in 2023.
