Better: Bank Indonesia staff nearby the damaged-money replacement counter, set up as part of the bankâs âclean money policy', aimed at providing the public with a good quality medium of exchange
span class="inline inline-center">
Bank Indonesia (BI) reported a current-account deficit (CAD) of US$17.8 billion in 2015, lower than the 2014 level of $27.5 billion, a result of an overwhelming drop in imports amid low exports and lighter capital outflow over the course of the year.
The 2015 CAD was equivalent to 2.1 percent of gross domestic product (GDP), compared with 3.1 percent CAD in 2014, the central bank said.
'It was due to a bigger decline in imports than in exports, as well as improved income and service balance. The drop in imports was caused by lower domestic demand in the sluggish economy,' said BI spokesperson Arbonas Hutabarat in a statement on Friday.
At the same time, he continued, the drop in exports was driven by weakened external demand caused by global slowdown and the continuing drop in global commodities prices.
In the fourth quarter of 2015 alone, the CAD stood at $5.1 billion or 2.4 percent of gross domestic product (GDP), widening from the third quarter CAD of $4.2 billion or 1.9 percent of GDP.
CAD is a measure of a country's foreign trade in both goods and services. It is part of the balance of payments, which summarizes an economy's transactions with the rest of the world.
Indonesia's balance of payments slipped to a $1.1 billion deficit last year from a surplus of $15.2 billion in 2014, a result of declined surplus in Indonesian capital and financial transactions, Arbonas explained. (ags)
Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.
Thank you for sharing your thoughts. We appreciate your feedback.