Indonesia's trade balance swung back to a small surplus and inflation held steady, data showed on Monday, in tentative signs of improvement in Southeast Asia's biggest economy after recent turmoil.
Workers load cement bags onto a ship at Jakarta's port of Sunda Kelapa, Indonesia. (AFP/Bay Ismoyo)
JAKARTA: Indonesia's trade balance swung back to a small surplus and inflation held steady, data showed on Monday, in tentative signs of improvement in Southeast Asia's biggest economy after recent turmoil.
The country was one of the hardest-hit emerging markets over summer as foreign investors withdrew funds from the equities market and the rupiah on fears the United States was set to wind down its stimulus programme.
Its own domestic woes, in particular a large current account deficit, added to the problems.
But indicators have mostly been improving of late after the government and central bank moved to shore up the economy and the US Federal Reserve has left its stimulus intact.
On Monday, data showed the trade balance swung to a surplus of US$42.4 million in October from a US$657.2 million deficit in September due to improved export growth and reduced imports, mainly of fuel following a huge hike in prices in June.
Economists had expected a sizeable deficit.
The figures showed that "the overall trade position was much better than could have been expected", said economist Robert Prior-Wandesforde from Credit Suisse.
Inflation edged up to 8.37 per cent from 8.32 per cent in November year-on-year but was below economists' expectations of 8.50 per cent, the data showed, giving the central bank a little room.
Indonesia has enjoyed a prolonged boom in recent years, clocking up annual growth of more than six per cent but analysts predict the economy will grow at its slowest pace in four years in 2013.
- AFP/gn
Indonesian data show economy stabilising after turmoil - Channel NewsAsia