JAKARTA, Aug 11 — Indonesia’s current account deficit widened in the second quarter, the central bank said today, but still inside a range that Bank Indonesia (BI) considers healthy.
Southeast Asia’s largest economy had a deficit of US$5 billion (RM21.4 billion) in its total foreign trade in goods and services in April-June, equal to 1.96 per cent of gross domestic product, BI said.
In the previous quarter, the deficit was 0.98 per cent of GDP.
Inflows recorded in the financial and capital accounts were enough to cover the deficit and brought Indonesia’s balance of payments to a US$739 million surplus in the second quarter. The first quarter’s surplus was US$4.5 billion.
In 2013, some economists considered Indonesia part of a group of countries dubbed the Fragile Five, as its current account deficit topped 4 per cent of GDP.
But in recent years, the deficit level has been recognised as comfortable. — Reuters