Current account imbalance hits India harder than EM peers, shows data

India's current account deficit is projected at 3.5 per cent for 2022, says IMF World Economic Outlook report

India is doing worse than many emerging market (EM) peers amid the widening current account balances globally. The current account balance is a measure of the money flowing into the country through trade and other means versus similar outflows.

The International Monetary Fund (IMF) projects that India will have a current account deficit equal to 3.5 per cent of its gross domestic product (GDP) in 2022. This is among the highest that the country has seen.

Other EMs’ current account balance has not been as badly affected by the recent economic volatility, shows an analysis of data from the IMF’s