BI: Gorontalo economy's positive trend to continue in Q1 2025

Bank Indonesia (BI) is optimistic that the Gorontalo Province will experience positive economic growth in the first quarter (Q1) of 2025. The agricultural, construction, household consumption, and investment sectors as well as realized government spending are the mainstays of the province's economic growth.

BI Gorontalo Province Representative Office Head Bambang Satya Permana explained that Gorontalo's economic growth improved from 3.91 percent year-on-year (yoy) in the third quarter (Q3) of 2024 to 4.44 percent yoy in the fourth quarter (Q4). The economic growth of Gorontalo Province in Q4 2024 was driven by the positive performance of the province's main sectors, namely agriculture and construction.

"On the expenditure side, the economic growth of Gorontalo Province was mainly driven by the growth of household consumption, investment, and realized regional government spending," said Bambang during BI Gorontalo Coffee with Media (Piramida) on Feb. 14, 2025.

The economic sector that dominated in contribution to Gorontalo's economic growth for Q4 2024 was the agricultural sector, which grew by 5.68 percent (yoy) driven by good corn harvest in the quarter. Furthermore, the construction sector grew by 7.34 percent yoy, supported by the construction of mining facilities and processing industries in Pohuwato Regency.

"Household consumption grew by 3.39 percent yoy in line with the Christmas and New Year celebrations. Furthermore, investment grew by 5.2 percent yoy due to mining and processing industries investments in Pohuwato," Bambang divulged.

He noted that Gorontalo's economy is expected to continue its positive growth trend in Q1 2025 by based on Q4 2024 performance and inflation in January 2025. The performance of the agricultural sector, which is projected to be the main source of economic growth in Gorontalo for Q1 2025, is predicted to progress well in line with the potential for a bumper harvest of corn commodities in the February-March 2025 period.

"In addition, the Ramadan and Idul Fitri period in March to early April 2025 are predicted to boost household consumption levels in Gorontalo. The performance of the export sector is also predicted to strengthen with an increase in exports of wood pellet commodities," Bambang elaborated.

The forecast for Gorontalo's positive economic growth is in line with the results of BI Gorontalo's Consumer Survey, with the resulting Consumer Confidence Index (CCI) and the Consumer Expectation Index (CEI) in January 2025 reaching 128.29 points and 144.72 points, respectively.

"The indeesx indicates that consumer confidence in current economic conditions is seen as relatively good by the public compared to the previous year," said Bambang.