Highlights of the 4Q18 Current Account
The 4Q18 current account deficits were at USD9.1 billion, equal to 3.57% of the GDP. The figure nudged up, compared to the 2Q18 of USD8.6 billion, equal to 3.28% of the GDP. On a cumulative basis, the 2018 current account deficits were at USD31 billion or 2.98% of the GDP. The widening deficits of 4Q18 were mainly attributable to the depleting surplus of non-oil and gas trade and the high deficits of oil and gas trade.
Downturn in Goods Trade Balance
The 4Q18 goods trade balance posted deficits of USD2.57 billion, wiping out significantly from the deficits of USD0.45 billion in 3Q18. The slowdown in the goods trade balance, exacerbated by the murky global backdrop amid the high demand in domestic market.
The goods trade balance underperformed for 2018 as it posted deficits of USD0.4 billion, in a stark contrast to its outperformance in 2017 by posting surpluses of USD18.7 billion. The leveraging imports of 20.7% y-y amid the deleveraging exports of 7.0% was the main factor of the 2018 deficits.
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