Indonesia Posted Trade Surplus In April 2023, Despite Fall In Imports And Exports
During the month of April, Indonesia had a trade surplus which turned out to be a lot more than the market expectations. What's more interesting is that Indonesia witnessed a drop in both its imports & exports during the same period of time.
If we look at the markets, the main export commodities of Indonesia are coal, nickel, and palm oil. During this period, the prices of these commodities also declined, which is the reason behind the decline in exports.
Global Commodity Boom Is Helping Indonesia
It appears that the recovery of Indonesia's economy is fueled by the commodity boom that's happening all over the world. However, the decline in commodity prices could further shrink the trade surplus of Indonesia.
And once the trade surplus is out of the picture, it could slow down Indonesia's economic growth considerably.
During April, exports from Indonesia were down by 29.4% on a yearly basis to only $19.29 billion. This data was released by the officials from the country, so it is very accurate.
For the most part, the economists were only forecasting a drop of 18.55% in Indonesia's exports. This means that the recent economic data was a surprise for everyone. According to one source, the recent fall was one of the biggest ever since 2009, which is almost 14+ years ago!
If we look at the exports of palm oil and coal, they also feel down by 40% on a yearly basis. Once again, this was a major fall when we look at the recent history.
Overall, the trade surplus of Indonesia was $3.94 billion, while the economists were forecasting a surplus of $3.38 billion only. If we look at the data, it seems the fall in Indonesia's imports played a major role in achieving this trade surplus.
As for imports, Indonesia spent $15.35 billion only which is 22.32% lower than the year before. According to economists, that's one of the biggest drops if we look at the last 3 years.