fxstreet.com 23 Feb, 2021 10:15 am

Current Account deficit forecast to widen in 2021 – UOB

Current Account deficit forecast to widen in 2021 – UOB
Economist at UOB Group Enrico Tanuwidjaja and Haris Handy assess the latest current account results in Indonesia. Key Quotes “Indonesia posted its sec

Economist at UOB Group Enrico Tanuwidjaja and Haris Handy assess the latest current account results in Indonesia.Key Quotes “Indonesia posted its second straight quarter of current account surplus in the last quarter of 2020, bringing the full year current account deficit (CAD) to -USD4.Nonetheless, direct and portfolio investment remained in surplus territory in line with investors’ optimism towards the domestic economic recovery and lower uncertainty in the global financial markets, especially in the second half of 2020.” “For 2021, we expect CAD to widen from the 2020’s position, primarily underpinned by higher primary income deficit from direct and portfolio investment return; in line with delayed repayment of 2020 dividend and economic recovery.

We expect CAD to widen to -1.” “The capital and financial account, which records trade in assets between Indonesians and foreign counterparts, remained in a surplus albeit only one fifth of 2019’s achievement.

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