Current Account Deficit Indonesia Widens to 3.37% of GDP in Q3-2018
In line with expectations, Indonesia's current account balance showed a wide deficit in the third quarter of 2018 (and one that has widened compared to preceding quarters). Indonesia's current account deficit was recorded at USD $8.8 billion, equivalent to 3.37 percent of the country's gross domestic product (GDP), in the third quarter of 2018.
The current account balance is a key concept in macroeconomic analysis. It involves exports and imports of currently produced goods, services as well as income flows to and from foreign residents. The balance therefore captures the extent to which a country is either accumulating net foreign assets or issuing foreign liabilities. In other words, it illustrates whether a country is a net borrower or lender to the rest of the world.
Indonesia's Q3-2018 current account deficit was higher than the USD $8.0 billion (3.02 percent of GDP) deficit in the second quarter of the year. The central bank of Indonesia (Bank Indonesia) emphasized that the current account deficit remained within a safe threshold at 2.86 percent of GDP in the first three quarters of the year, combined.
Current Account Balance Indonesia:
The text above is the introduction to the article that is included in the November 2018 edition of our research report. This article discusses:
(1) the causes of Indonesia's widening current account deficit
(2) strategies to improve the deficit
(3) a forecast for the future
Read the full article in the November 2018 edition of our monthly research report (scheduled to be released in early December 2018). You can purchase this report by sending an email to info@indonesia-investments.com or a WhatsApp (WA) message to the following number: +6287884106944
