Icra On Current Account Deficit
India's current account deficit to widen to 5% in Q2, 3.5% in FY23: Icra
India's current account deficit (CAD) will widen to 5 per cent of the GDP in the September quarter due to higher merchandise trade deficit, domestic ratings agency Icra said. The trade deficit has doubled to USD 28.7 billion for August due to a 36.8 per cent expansion in imports and a 1.2 per cent decline in export earnings. "The current account deficit (CAD) is projected to widen to an all-time high of USD 41-43 billion in Q2 FY23 from the USD 30 billion expected in Q1 FY23. It is expected to widen to 5 per cent of GDP in Q2 FY23, the second highest level since Q3FY12," it said in a note. For the first two months of the quarter, the monthly average trade deficit has trended higher at USD 29.3 billion as against USD 23.5 billion in the June quarter, driven by strong domestic demand which led to a surge in the imports while exports remained subdued amid international slowdown fears, Icra said. CAD will moderate to 2.7 per cent of GDP in the second half of the fiscal, benefitting fro
 "India's current account deficit to widen to 5% in Q2, 3.5% in FY23: Icra")
Icra sees CAD doubling to 1.5% of GDP by March on rising crude prices
The CAD is one of the most critical factors that dictate macro stability
 "Icra sees CAD doubling to 1.5% of GDP by March on rising crude prices")
