World News

Indonesia seen posting smaller trade deficit in December: Reuters poll

JAKARTA (Reuters) – Indonesia’s trade deficit is likely to have narrowed in December, following its largest trade gap in seven months in the prior month, a Reuters poll showed on Monday.

The median forecast from 12 economists in the poll was for a trade deficit of about $470 million in December, following a revised $1.39 billion deficit in November.

The poll forecast exports to have shrunk 3.03% on-year in the month, moderated from November’s 6.09% drop.

Meanwhile, December imports were seen falling 6.30% annually, slower than the 9.24% drop posted a month earlier.

In the first 11 months of 2019, Southeast Asia’s largest economy recorded a trade gap of $3.17 billion.

The central bank is scheduled to deliver its policy rate decision after a two-day meeting on Jan. 22-23, and constant trade deficits could be a factor that Bank Indonesia will consider at the meeting.

(Reporting by Tabita Diela, Nilufar Rizki, and Maikel Jefriando; Editing by Sherry Jacob-Phillips)