MANILA: Indonesia’s current account deficit shrank to 0.8 percent of gross domestic product (GDP) in the fourth quarter of 2016, its smallest reading in five years, the central bank governor said on Wednesday, though he noted it may widen again in 2017.
The current account deficit was 1.8 percent of GDP in the third quarter. Governor Agus Martowardojo told an economic forum Indonesia’s current account gap was $17 billion in 2016 or 1.8 percent of GDP. It may swell to $22 billion to $23 billion, or 2.4 percent, this year.
“In general, the deficit will still be below 2.5 percent of GDP and that is an acceptable level and it’s healthy,” he said.
The country had a $12 billion surplus in its balance of payments in 2016, Agus added. Bank Indonesia will formally report the figures in the 2016 balance of payments data due Friday.
