Contrary to predictions at the start of last year, the Indonesian economy has not fully recovered in 2021 and has not yet returned to pre-pandemic growth levels. Ending 2021 with a GDP growth rate of 5,02% (yoy) in the fourth quarter of 2021, economic growth for the whole of 2021 was recorded at 3,37% (yoy). Various waves of Covid-19 variants have hampered the economic recovery process throughout 2021. Furthermore, sectoral performance indicates that economic recovery at the end of 2021 has returned to an upward trend after experiencing a decline in the third quarter of 2021 due to disruption from the Delta variant. Several leading sectors of the Indonesian economy, such as manufacturing, wholesale & retail trade, and agriculture grew rapidly in the fourth quarter of 2021, showing improvements in production activity, household demand, and people's purchasing power. Furthermore, the two sectors most affected during the pandemic, namely transportation & warehousing and accommodation & food and beverage, also experienced high growth in the final quarter of 2021 due to good handling of the pandemic which enabled people to travel and have entertainment activities. In terms of expenditure, all components of household consumption also recorded positive growth in the last three months of last year. Contributing to more than half of the Indonesian economy, consumption grew by 3,55% (yoy) and government spending increased by 5,25% (yoy) in Quarter-IV 2021, as a result of accelerated realization of state spending. As of December 31 2021, actual government spending was recorded at 101,34% of the 2021 budget or IDR2.786,76 trillion. At the same time, the realization of National Economic Recovery (PEN) spending was recorded at IDR658,6 trillion at the end of the year or 88,4% of the total PEN budget of IDR744,77 trillion, an increase of 53% from the realization on 17 September 2021.

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