The positive trend of the external balance will persist as the current account deficit has fallen to US$6.8 billion, or 6.8 percent of the Gross Domestic Product (GDP) in the third quarter of 2014, from US$8.7 billion, or 4.06 percent of the GDP in the previous quarter, executive director of the central banks communication department Tirta Segara said here on Friday.
"The global economic recovery is expected to have a positive impact on our exports, despite declining global commodity prices. However, our imports are expected to remain unchanged due to a moderate domestic economic growth," he said.
Hence, the trade surplus, which is expected to increase in the fourth quarter, will help improve the current account deficit, he added.
The flow of foreign capital to the domestic market is expected to continue, but its intensity will decline due to global and domestic negative sentiments, he noted.
"In October 2014, the investors wait for the new governments work plans and the external factors related to the normalization of the Fed policy had caused foreign investors to book net sales of shares. However, they have increased their ownership of the SUN (government bonds) and SBI (Bank Indonesia Certificates)," he pointed out.
(s012/INE)
Reported by Citro Atmoko
EDITED BY INE.
Editor: Suryanto
Copyright © ANTARA 2014
