Indonesia: Exports rebound in June, but trade balance returns to deficit
August 4, 2014
Exports grew 4.5% in June over the same month last year. The result contrasted the 8.1% decrease observed in May and marked the largest expansion in six months. Non-oil and gas exports, which account for the majority of Indonesian shipments, increased 5.6% in June (May: -5.7% year-on-year). Oil and gas exports decreased a modest 0.4% (May: -18.8% yoy). Meanwhile, imports swung from an 11.3% contraction in May to a 0.5% expansion in June.
The trade balance dropped from a modest USD 53 million surplus in May to a USD 305 million deficit in June, although this was not nearly as large as the USD 877 million shortfall recorded in the same month last year. Moreover, the deficit did not reach the USD 387 deficit the market had expected. Meanwhile, the 12-month moving sum of the trade balance posted a shortfall of USD 1.9 billion, which was smaller than the USD 2.5 billion deficit observed in May.
Author: Carl Kelly, Economist