- Trade surplus increased to USD 4.42 Bn in Nov-24, due to a steeper decline in imports compared to exports.
- CPO exports normalized on seasonal effect and tariffs from India, while Chinese demand for nickel soared albeit potentially only in the short-term.
- Declining imports of capital goods aligns with waning CAPEX cycle, while stable consumer goods imports despite seasonal restocking may not be a good sign for consumption.
- The government's pairing of VAT increase with consumer-oriented stimulus seems to be a compromise between government financing and the need to support growth.
