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Jakarta Post

CAD to remain high this year as escalating trade war will affect exports: Analysts

  • Marchio Irfan Gorbiano

    The Jakarta Post

Jakarta   /   Thu, August 15 2019   /  02:22 am

Indonesia’s current account deficit is expected remain wide this year as uncertainties as a result of the escalating Sino-American trade war will continue to hamper exports.The current account deficit widened to US$ 8.4 billion or 3.04 percent of GDP in the second quarter of 2019, according to the latest data issued by Bank Indonesia (BI). The figure is higher than $7.9 billion or 3.01 percent of the GDP in the same period last year.The second quarter figure slightly surpassed the 3 percent level that BI considers to be sustainable. The currency account deficit continued to widen despite a number of policies introduced by the government last year to improve the country’s balance of payment.The government projects this year’s current account to hover between 2.5 percent and 3 percent of GDP. But analysts estimate that it will be difficult to reduce the deficit to the government’s ...