CAD may jump over 5% of GDP in Q2FY23, relief likely in the next fiscal

The current account deficit may have widened to 3.4% of the gross domestic product in the first quarter against a surplus of 0.9% a year ago

The country's current account deficit (CAD) is expected to be at a nine-year high of 3.4-3.7 per cent of its gross domestic product (GDP) during the first quarter of the current financial year. A more serious development would be that the CAD is likely to widen to 5.5 per cent of GDP in the second quarter, which would be the second worst after the quarterly deficit on record after 6.8 per cent in the third quarter of 2012-13.

According to a report by Motilal Oswal Financial Services Ltd (MOFSL), the CAD could widen to 3.7 per cent of GDP in