JAKARTA- Indonesia’s current account swung to a deficit in 2023 on shrinking merchandise exports due to a slowing global economy and declining commodity prices, the central bank said on Thursday.
Southeast Asia’s largest economy recorded a $1.6 billion current account deficit last year, or 0.1 percent of GDP, compared with a surplus of 1 percent of GDP in 2022, which had been fueled by a global commodity boom.
The nation’s balance of payments stood at a surplus of $6.3 billion in 2023.
The latest data meant 2022 was Indonesia’s only year of booking a current account surplus in the past 12 years.
Economists often cite the frequent deficits as one of Indonesia’s main weaknesses as the country typically relies on portfolio inflows to plug the gap.
