Growth picked up
In its August 2026 Bali Provincial Economic Report, Bank Indonesia says the island's economy expanded 5.78% year on year. Growth was 5.58% in the first quarter, and Indonesia as a whole grew 5.29% in the second.
Construction, including government and private projects, and agriculture were the main drivers. ANTARA reported that the Bali and Nusa Tenggara region grew 6.10%, with Bali contributing 2.77 points.
Tourism under pressure
Accommodation and food services contracted 5.17%. BI links this to Middle East tensions that reduced foreign tourist arrivals.
Even so, the central bank says unemployment stayed low, with new jobs concentrated in agriculture, trade and accommodation.
Inflation and lending
Bali's inflation was 3.27% year on year in the second quarter, up from 2.81% in the first. It remains within the 2.5% plus or minus 1 point target.
Lending accelerated, especially investment loans. Small and medium businesses hold 41.69% of loans, which grew 6.11%. For full-year 2026, BI projects Bali's growth at 5.4% to 5.9%.
For the wider Bali and Nusa Tenggara region, BPS data credited mining, trade and public administration with supporting growth.
What GRDP means here
GRDP (gross regional domestic product) measures all goods and services produced in the province. Year-on-year growth compares a quarter with the same quarter a year earlier.
Tourism makes up a large part of Bali's economy, so a contraction in accommodation stands out against overall growth. For now, growth is coming from other sectors, construction above all.