The logo of Bank Indonesia marks the central bank's headquarters in Jakarta (Photo: Antara)
Jakarta (VNA) – Bank Indonesia (BI) has revised its projection of the current account deficit (CAD) for 2017, reported the Jakarta Post online newspaper on February 21.
The country’s CAD for this year was predicted to reach 2.1 percent of gross domestic product (GDP), lower than the previous prediction of 2.4 percent, but above the 2016 result of 1.8 percent.
The projection was made during a BI board meeting and in the context that the Indonesian economy is predicted to grow better in 2017.
BI Governor Agus Martowardojo said the central bank is preparing for unfavourable external economic factors, including expansive economic policies and a corresponding fund rate increase from the United States, which could result in capital outflows from emerging markets like Indonesia.
However, he noted that global investors remain optimistic towards Indonesia as the country is still one of the best three emerging markets for investment.-VNA