Indonesia C/A Deficit to Fall Below 3 Pct of GDP This Year

Bareksa.com - Indonesia's current account deficit is expected to fall below 3 percent of gross domestic product this year due to a sharp drop in global oil markets and last month's hike in domestic subsidised fuel prices, a central bank official said.

Bank Indonesia Deputy Governor Hendar told reporters on Thursday that the current account deficit narrows by around $170 million for every $1 drop in global oil prices.

The current account deficit in the third quarter narrowed sharply to 3.07 percent of GDP, compared with 4.07 percent in the previous quarter.

While the deficit has narrowed, it remains higher than the 2.5 percent of GDP that the central bank considers healthy. (Source : Reuters)