Indonesia’s trade surplus shrank in July against the backdrop of weakening global trade

Indonesia’s trade surplus may narrow to $3.93 billion last month as weak exports hit the country due to slowing global trade activity.

Southeast Asia’s largest economy posted a trade surplus of $5.09 billion in June. Palm oil exports recovered after the three-week ban was lifted in May.

Exports grew 29.73% year-on-year in July, down from 40.68% in June.

Imports rose 37.30% year-on-year in July, compared to a 21.98% increase in June.

Bank Mandiri economists estimated the surplus in July at $3.85 billion. It said exports were weak compared to the previous month given the slowdown in global trade and lower coal and palm oil prices.

“Commodity prices continue to support export performance, but fears of a global recession are weighing on prices,” he said, adding that imports have caught up with exports thanks to a recovering domestic economy.

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