Indonesia: Trade deficit narrows in June
August 1, 2013
Exports fell for the 15th consecutive month in June and contracted 4.5% over the same month last year, which followed the 4.1% decline observed in April (previously reported: -4.5% year-on-year).
Non-oil and gas exports, which account for a majority of Indonesian shipments, contracted 4.4% in June (April: 0.8% yoy). Oil and gas exports dropped 4.9%. (May: -21.4% yoy).
At the same time, imports fell 6.8% in June, which followed the 2.2% decrease recorded in May.
The trade deficit reached USD 847 million in June, which was larger than the USD 527 million shortfall registered in May but fell below market expectations of a USD 789 million deficit. As a result, the 12-month moving sum of the trade balance reached a shortfall of USD 5.5 billion, lower than the record USD 5.9 billion deficit observed in May.
FocusEconomics Consensus Forecast panellists anticipate exports to expand 0.4% and the trade surplus to reach USD 3.4 billion in 2013. For 2014, the panel expects exports to grow 11.6% and the trade surplus to widen to USD 8.9 billion.
Author: Carl Kelly, Economist