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RI's current account deficit to reduce in Q3: Bank Indonesia
Bank Indonesia predicts the country's current account deficit will fall to 3
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ank Indonesia predicts the country's current account deficit will fall to 3.8percent of gross domestic product (GDP) in the third quarter of the year.
"We have roughly counted the deficit of the current account and the figureis around US$8 billion," Bank Indonesia deputy governor Perry Warjiyo saidin Jakarta on Wednesday, as quoted by kontan.co.id.
Perry said there were a number of factors that helped reduce the currentaccount deficit, such as export and import activities as well as the dividendsto the government.
He said that improvement in mineral concentrate export values by as much as$1.7 billion and lower imports in the non-oil and gas sector throughout thethird quarter had helped reduce the deficit.
The lower imports were caused by decreasing demand from the domestic market in thenon-oil and gas sector.
He said that the rise of non-oil and gas products during the second quarter of2014 was triggered by the fasting month of Ramadhan and the subsequent IdulFitri festivity.
Based on Central Statistics Agency (BPS) data, the import value for non-oil andgas products in June was $12.33 billion, or an 11.41 increase from $11.06billion in the previous month.
The central bank predicted the deficit would continue to decrease in the fourth quarter of the year.
By the end of 2014, it projected the current account deficit would be $27 billion, or 3.2 percent of GDP.
The figure was lower than the $29.12 billion deficit, or equal to 3.34 percent of GDP, recorded in 2013, he said. (nfo)
