2Q15 Balance of payment: In deficit

Better than our (USD5.6bn) and consensus estimates (USD5.4bn), the current account deficit (CAD) improved to USD4.5bn (2.1% of GDP). Services balance improved 6.6% y-y supported by transportation which jumped 20.1% y-y while primary-income balance improved 6.9% y-y, helped by lower income repatriation from equity investments which dropped 12.6% y-y.

In our view, this is a reflection of the current slowdown in business environment. The 2Q15 trade balance of USD4.1bn also cushioned the CAD, which we expect to keep improving through year end on the back of continued lower imports.

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