CAD reduces sequentially to 1.5% of GDP in Q4 as trade deficit moderates

Current account deficit (CAD) decreased sequentially to $13.4 billion (1.5 per cent of GDP) in the fourth quarter ended March 2022. CAD was down from $22.2 billion (2.6 per cent of GDP) in the third quarter ended December 2021.

The sequential decline in CAD in Q4 of FY22 was mainly on account of a moderation in trade deficit and lower net outgo of primary income, the Reserve Bank of India (RBI) said in a statement.

The current account was in deficit to the tune of $ 8.1 billion (1 per cent of GDP) a year ago (Q4 of FY21).

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