Indonesia’s second-quarter current account deficit widens to 0.9% of GDP, by Reuters

JAKARTA (Reuters) – Indonesia’s current account deficit widened to 0.9 percent of gross domestic product (GDP), or $3 billion, in the second quarter from a revised deficit of 0.7 percent of GDP in the previous quarter, the central bank said in a statement. Thursday.

The deficit as a percentage of GDP was the largest since the second quarter of 2020, data from LSEG Workspace shows.

BI said the deficit in trade in services widened due to travel for the hajj pilgrimage during the quarter, affecting the current account balance.

Bank Indonesia (BI) said earlier this week that it expects the current account deficit to remain low, maintaining its outlook for a deficit of 0.1 percent to 0.9 percent of GDP this year.

The balance of payments for the second quarter had a deficit of about $600 million, Bank Indonesia added, compared to a deficit of $6 billion in the first quarter.