Monday, August 13, 2018

Govt Committed to Anticipate Global Financial Risks

Jakarta: Finance Minister Sri Mulyani Indrawati has prepared measures to address volatile global financial markets.

"We will continue to monitor the situation. We will continue to exercise control," said the former World Bank managing director at Hotel JS Luwansa, Kuningan, South Jakarta on Monday, August 13, 2018.

"Our growth is good but our current account deficit is concerning," she added.

The country recorded a current account deficit of $8.0 billion (3.0% of GDP) in the second quarter of 2018. The number increased from $5.7 billion (2.2% of GDP) compared to the previous quarter.

The increase in current account deficit was influenced by narrowed non-oil and gas trade surplus amid increase in oil and gas trade deficit. The narrowed non-oil and gas trade surplus was mainly due to the increase in imports of raw materials and capital goods.

"It was a result of increased in production and investment activities in the midst of falling non-oil and gas exports," said Bank Indonesia (BI) in a written statement earlier this month.

Increase in oil and gas trade deficit was mainly influenced by rising imports. The higher level of imports was in line with higher world oil prices and demand during Lebaran and school holiday. 

"In the reporting period, consistent with seasonal trends, there was an increase in dividend payment which contributed to the increase in the primary income deficit," the central bank added.

(WAH)

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http://en.metrotvnews.com/business-en/5b2VBzvb-govt-committed-to-anticipate-global-financial-risks

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