Update COVID-19 in Indonesia: 1,298,608 confirmed infections, 35,014 deaths (23 February 2021)
23 February 2021 (closed)
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The central bank of Indonesia (Bank Indonesia) announced on Friday (12/02) that Indonesia's current account deficit widened to 2.39 percent of the country's gross domestic product (GDP), or USD $5.1 billion, in the fourth quarter of 2015 from a deficit of 1.94 percent of GDP (USD $4.2 billion) in the preceding quarter. This increase was due to a decline in the non-oil & gas trade balance surplus as non-oil & gas imports grew 7.5 percent (q/q) amid higher domestic demand amid accelerating economic growth in the last quarter of 2015.
In the fourth quarter of 2015 Indonesia's economy expanded 5.04 percent (y/y), the fastest growth pace since Q1-2014.
Rising imports in the fourth quarter of 2015 mainly comprised capital goods, consumer goods, and raw materials. Meanwhile, non-oil & gas exports contracted by 4.2 percent (q/q) due to sluggish global demand and persistently weakening commodity prices. Regarding the oil & gas trade balance, the declining volume and price of oil managed to shrink the existing deficit.
Indonesia's current account deficit of 2.39 percent of GDP in Q4-2015 constitutes an improvement from a deficit of 2.70 percent of GDP in the fourth quarter of 2014. Regarding full-year 2015, Indonesia's current account deficit stood at USD $17.8 billion, equivalent to 2.06 percent of GDP, down from USD $27,5 billion (3.09 percent of GDP) in 2014.
Further Reading: Analysis and Overview of Indonesia's Current Account Balance
Meanwhile, the country's balance of payments in Q4-2015 recorded a surplus of USD $5.1 billion, improving markedly from a deficit of USD $4.6 billion in the preceding quarter. Bank Indonesia stated that this improvement came on the back of a surplus in capital and financial transactions of USD $9.5 billion.
Indonesia's Current Account to GDP: