Indonesia's current account deficit to fall below 3% of GDP this year

[JAKARTA] Indonesia's current account deficit is expected to fall below 3 per cent 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 US$170 million for every US$1 drop in global oil prices.

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

While the deficit has narrowed, it remains higher than the 2.5 per cent of GDP that the central bank considers healthy.

REUTERS