Indonesia: Trade deficit narrows in May
July 1, 2013
In May, exports fell for the 14th consecutive month and contracted 4.5% over the same month last year, which followed the 8.7% decline observed in April (previously reported: -9.1% year-on-year). As a result, in the 12 months up to May, exports decreased 9.8% over the same period the previous year (April: -10.0% yoy).
Non-oil and gas exports, which account for a majority of Indonesian shipments, edged up 0.8% in May (April: -2.4% yoy). Oil and gas exports, on the other hand, plunged 23.0% (April: -31.1% yoy).
Simultaneously, imports fell 2.2% in May, which followed the 2.8% decrease recorded in April. Consequently, in the 12 months up to May, imports added 1.1% in annual terms, below the 2.5% rise registered in April.
Meanwhile, the trade deficit reached USD 590 million in May, which was smaller than the USD 1.7 billion shortfall registered in April but exceeded market expectations of a USD 460 million deficit. As a result, the 12-month moving sum of the trade balance reached a record shortfall of USD 6.0 billion, exceeding the USD 5.6 billion deficit observed in April.
FocusEconomics Consensus Forecast panellists anticipate exports to expand 4.3% and the trade surplus to reach USD 5.4 billion in 2013. For 2014, the panel expects exports to grow 13.2% and the trade surplus to widen to USD 10.3 billion.