Indonesia's trade surplus predicted to expand to $2.53 billion in May, according to a poll on our site.
Jakarta, Indonesia's Trade Surplus Takes a Hit
Hey there! Indoneesia's trade surplus for May 2021 has taken a bit of a hit, buckling under the weight of less-than- anticipated export growth and continued robust import demand, according to a recent poll.
Analysts predict that the growth of imports would hover around 0.9%, a significant decrease from the double-digit rise recorded in April. Exports, on the other hand, are anticipated to climb a mere 0.4%, much lower than the 5.76% increase in the previous month.
Indonesia's booming economy has enjoyed monthly trade surpluses since mid-2020, primarily fueled by a commodity boom. However, these surpluses have been gradually shrinking thanks to weaker global demand.
The poll's estimates for May's trade surplus come in significantly lower than the $4.9 billion forecasted by Finance Minister Sri Mulyani Indrawati, representing the largest monthly surplus in over two years.
Curious to know more about the specifics? Here's the breakdown:
- Export Growth Takes a Dive: Export growth for May is expected to be lackluster, with estimates indicating a mere 0.4% rise. This significant drop compared to April's swift 5.76% growth is a contributing factor to the narrowed trade surplus.
- Imports Still Pack a Punch: Although analysts expect import growth to drop from the double-digit rise in April, it still clocks in at around 0.9%. With imports still outpacing exports to some extent, the trade surplus has shrunk.
- Commodity Chaos: Commodity exports had been driving Indonesia's trade surpluses, but fluctuating commodity prices and weakening global demand have led to a decreased export growth rate, ultimately impacting the surplus size.
So, there you have it! The combination of sluggish export growth and persisting import demand has resulted in Indonesia's May 2021 trade surplus being much lower than initially projected. Buckle up, folks, as we await reports on Indonesia's consumer price index for June and foreign arrivals data for May. Stay tuned! 😎😎😎🔝💪🇮🇩🏆💪🚀📈📈📈
(Sourced from Devayani Sathyan in Bengaluru; Reporting by Stefanno Sulaiman in Jakarta; Edited by Vijay Kishore)
East Asia's finance industry might be keeping a close eye on Indonesia's trade situation, as the country's industry sector adjusts to a growing deficit in the trade surplus. The shrinking surplus could potentially impact Indonesia's overall economic growth, given its reliance on exports, particularly commodities, in East Asia's regional economy.
