The middle class is a group with a significant contribution to household consumption growth, which often becomes the largest component of GDP.
Published 3 months ago · Labour Market
Reading time: 22s · Source 189s · · bisnis.com
Sentiment: · · ·- Economic growth in Indonesia has been slowing down over the past two years, with 2022 at 5.31% and 2023 at 5.05%.
- Household consumption, a major component of GDP, is projected to contribute 54.04% to economic growth in 2024.
- The middle class has been increasingly burdened by living costs and taxes, impacting their consumption capacity.
- Since the pandemic, the purchasing power of the middle class has not recovered, while lower-income groups have regained their pre-pandemic levels.
- Experts suggest that government policies should focus on supporting the middle class to stimulate economic growth and reach targets like 5.2% for 2025.
Find out the mood, impact, relevance and relevant interest groups
Analyses of the article
SENTIMENT
The article highlights challenges faced by the middle class and the need for government intervention, reflecting a negative outlook on the current economic situation.
IMPACT
Short
The economic growth slowdown is a current issue with noticeable effects on the economy and households, indicating short-term impacts.
RELEVANCE
High
The economic situation in Indonesia is significant for a broad audience, especially considering its implications for policy and public welfare.
STAKEHOLDER
Government
The focus on government policies to support the middle class indicates that the government is a key stakeholder in addressing these economic challenges.