Current account deficit could cross 5% in 2022 if crude hits $150/barrel

India's CAD expanded to 2.7 per cent of GDP in the December quarter from 1.3 per cent in September quarter on account of higher import bill

India’s current account deficit (CAD) could shoot up above 5 per cent of gross domestic product (GDP) in 2022 if the global crude oil price touches $150 per barrel. This would make the country vulnerable to capital flight, S&P Global Ratings said in a report.

“We calculate what the 2022 current account balance would be if the only change this year is the world oil price of $150 per barrel. In this simple scenario, the 2022 current account deficit would be above 5 per cent in India, the Philippines and Thailand — putting these nations at risk of capital flight. This