Indonesia: Merchandise exports grow at a milder rate in October
November 22, 2022
Merchandise exports shot up 12.3% year-on-year in October (September: +20.2% year-on-year). October’s result marked the slowest growth since February 2021. Meanwhile, merchandise imports soared 17.4% in annual terms in October (September: +22.0% yoy), marking the weakest reading since February 2021.
As a result, the merchandise trade balance improved from the previous month, recording a USD 5.7 billion surplus in October (September 2022: USD 5.0 billion surplus; October 2021: USD 5.8 billion surplus). Lastly, the trend deteriorated, with the 12-month trailing merchandise trade balance recording a USD 50.0 billion surplus in October, compared to the USD 50.2 billion surplus in September.
Commenting on the outlook, Enrico Tanuwidjaja, economist at UOB, stated:
“We expect Indonesia to record a current account surplus amounting to 0.8% of GDP in 2022 before waning commodity prices, higher imports, higher services deficit, and higher primary deficit turn the CA position into a deficit of circa 0.5% of GDP in 2023.”