Impacts of Household Consumption Expenditure on Gross Regional Domestic Product during the COVID-19 Pandemic

Abstract

This study illuminates the consequences of the Covid-19 pandemic, a globally unprecedented event that disturbed world economies. It specifically delves into the impact of changes in household consumption expenditure on Gross Regional Domestic Product (GRDP) in Indonesia. The research's main objective was to elucidate the relationship between alterations in household consumption expenditure and the nation's GRDP from 2019 to 2021, a period significantly influenced by Covid-19. A hypothesis testing study design with a quantitative approach was employed, and secondary data from reliable sources was used to evaluate the hypothesis. The results pointed to a significant relationship between household consumption expenditure and GRDP. The period saw variations in household consumption patterns, directly correlating with the ebb and flow of the regional economy. The research's novelty lies in its contextual use of the Covid-19 pandemic, providing a recent, tangible example of how drastic, unexpected changes in household consumption expenditure can directly affect a region's macroeconomic standing. This study, thus, offers critical insights into economic policymaking, particularly in times of crisis, underscoring the need for dynamic strategies that promptly respond to shifts in household consumption. This benefits not only the scientific community in formulating proactive economic theories but also society by fostering resilient, adaptable economies. Keywords: household consumption expenditure, gross regional domestic product (GRDP), covid-19 pandemic