Indonesia: Exports contract for the fourth straight month in July
September 3, 2012
In July, exports contracted 7.3% over the same month last year, which followed the 16.0% decline observed in June (previously reported: -16.4% year-on-year) but was smaller than the 9.7% decrease expected by the market. Non-oil and gas exports, which account for the majority of Indonesian shipments, fell 3.2% in July (June: -15.2% yoy). Meanwhile, oil and gas exports fell 21.7% in July, marking its fastest pace of decline in almost three years. Imports, on the other hand, increased a modest 0.7% in July, which was below both the 11.0% rise recorded in June and market expectations of a 6.5% increase. As a result, the trade balance registered a shortfall of USD 176 million, contrasting both the USD 1.2 billion surplus registered in the same month last year and market expectations of a USD 1.5 billion surplus.