Indonesia: Exports drop again in May, but trade balance recovers
July 1, 2014
Exports fell a substantial 8.1% over the same month last year in May. The result followed the 3.2% decrease observed in April and marked the lowest print in 13 months. Non-oil and gas exports, which account for the majority of Indonesian shipments, contracted 5.7% in May (April: -5.4% year-on-year). Oil and gas exports plunged 18.8% (April: +8.1% yoy). Meanwhile, imports contracted 11.4% in May, which followed the 1.3% decrease recorded in April.
The trade balance rebounded from a USD 2.0 billion deficit in April to a modest USD 70 million surplus in May, which also contrasted the USD 500 million shortfall recorded in the same month last year. Moreover, the surplus contrasted market expectations of a USD 150 million deficit. Meanwhile, the 12-month moving sum of the trade balance posted a shortfall of USD 2.4 billion, which was smaller than the USD 3.0 billion deficit observed in April.
Author: Carl Kelly, Economist