Indonesia: Exports fall at the fastest pace in almost three years
July 2, 2012
In May, exports contracted 8.5% over the same month last year, which followed the 2.3% decline observed in April (previously reported: -3.5% year-on-year) but was above market expectations of a 9.0% decrease. Non-oil and gas exports, which account for the majority of Indonesian exports, fell 7.7% in May (April: -2.4% yoy). Meanwhile, oil and gas exports fell a more severe 11.4% in May (April: -1.9% yoy). Imports, on the other hand, increased 16.1% in May, which was above both the 13.8% rise recorded in April and market expectations of a 10.5% increase. As a result, the trade balance registered a shortfall of USD 486 million in May, which contrasted both the USD 3.5 billion surplus registered in the same month last year and market expectations of a USD 220 million surplus.