Indonesia's trade deficit tumbles to US$1.5b
This is way larger than June's peak.
According to DBS, the trade balance flipped back into negative territory in October, registering a deficit of USD 1.5bn. This figure is even larger than the previous peak of USD 1.3bn set in June this year.
Here's more from DBS:
The largest factor behind the slump in trade balance lie with the 12.1% MoM surge in October as exports stayed nearly flat in level terms.
Imports were also skewed to the upside due to a large shipment of airplanes, according to deputy statistics director Sasmito Hadi Wibowo.
Driven by a robust domestic economy, oil consumption and capital goods saw strong imports over the course of this year. However, exports have languished amid weak global growth and depressed commodity prices.
As a result, Indonesia’s current account has been in persistent trade deficit this year. For the full year, the current account deficit may reach up to 2.5% of GDP, compared to a surplus of 0.2% of GDP in 2011.
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