Indonesia's Q2 current account deficit widens to 0.8% of GDP
A general view of the city skyline of Jakarta, the capital city of Indonesia, August 5, 2021. REUTERS/Ajeng Dinar Ulfiana/ File Photo
JAKARTA :Indonesia ran a current account deficit of $3 billion in the second quarter, equal to 0.8 per cent of its gross domestic product, after a deficit of 0.1 per cent of GDP in the previous quarter, the central bank said on Thursday.
The deficit widened from $200 million in the first quarter, and was driven by rising dividend and coupon payments by companies, aligning with the quarterly cycle, the central bank said in a statement.
BI maintained its outlook for a full-year current account deficit of between 0.5 per cent and 1.3 per cent of GDP in 2025.
The balance of payments for the second quarter saw a deficit of $6.7 billion, compared with a deficit of about $800 million in the previous quarter, BI added.
The deficit was due to foreign capital outflows in the form of domestic bonds, the central bank added.
Indonesia's current account position is closely monitored by investors and policymakers because it is seen a as source of economic vulnerability that makes the country susceptible to capital outflows and weakens the rupiah currency.
