"By the end of the year the current account deficit could be at 3.5 percent. Currently the current account shows an encouraging trend," BI Governor Agus Martowardojo said here on Friday.
The countrys current account deficit in the third quarter of this year fell to US$8.4 billion from US$9.9 billion in the second quarter (4.4 percent of the GDP).
The decline in deficit was attributable to a surplus in trade of non oil/gas commodities and a sharper fall in imports than in exports of commodities other than oil and gas.
Lower deficit in service and income account also contributed to the decline in current account deficit.
In 2014, further decline is expected in current account deficit with the progress in structural improvement by the government.
"The deficit in 2014 is forecast at around 3 percent of the GDP," Agus said
He said domestic economic stabilization policy adopted by Bank Indonesia and the government proved to be effective in gradually improving the countrys current account.
"With the cooperation and structural reform , the current account deficit could be pressed down to less than 3 percent," he said.
Wide current account deficit has put pressure on the domestic stock market lately.
(H-ASG/H-YH)
Editor: Jafar M Sidik
Copyright © ANTARA 2013
