Indonesia’s trade deficit narrowed to 2.9 billion USD in July – September period from 3.1 billion USD in the second quarter as the country’s imports slowed due to weaker domestic demand and a weakening rupiah.
According to the Central Statistics Agency (BPS), the deficit of 2.3 billion USD in July swung to 660 million USD in September.
However, the agency noted that an improvement in the current account deficit may not be as immediate as many expected and that the economy may not be able to fend off shocks in the global financial market.
The current account deficit of 9.8 billion USD was forecast to fall to 8 billion USD in the third quarter. During the period, the country’s exports dropped 6.7 percent to 43 billion USD year-on-year but were down 5.8 percent from the second quarter.
Imports rose 1 percent to 46 billion USD in the third quarter from a year earlier but were down 5.9 percent from the April-June period.
The country’s central bank plans to keep its interest rate at 7.5 percent throughout this year.-VNA
According to the Central Statistics Agency (BPS), the deficit of 2.3 billion USD in July swung to 660 million USD in September.
However, the agency noted that an improvement in the current account deficit may not be as immediate as many expected and that the economy may not be able to fend off shocks in the global financial market.
The current account deficit of 9.8 billion USD was forecast to fall to 8 billion USD in the third quarter. During the period, the country’s exports dropped 6.7 percent to 43 billion USD year-on-year but were down 5.8 percent from the second quarter.
Imports rose 1 percent to 46 billion USD in the third quarter from a year earlier but were down 5.9 percent from the April-June period.
The country’s central bank plans to keep its interest rate at 7.5 percent throughout this year.-VNA
