Live Updates > Live Update Details
2025-09-17 10:17:05
[Indonesia's current account deficit may widen due to the global economic slowdown] BMI, a subsidiary of Fitch Solutions, said it expects Indonesia's current account deficit to widen as a percentage of GDP from 0.6% in 2024 to 1.1% in 2025 and 1.3% in 2026. The agency said the deficit is expected to widen as the global economy slows and drags down exports under the influence of US tariffs and weak commodity demand. The agency said that strong export growth in the first half of the year may reflect advance shipments before the implementation of US tariffs, adding that Indonesia's foreign exchange reserves are largely sufficient to buffer any short-term shocks. However, BMI said that US trade policies and the populist measures of Indonesian President Prabowo Subianto may undermine investor confidence and make the current account deficit more difficult to make up.
