CAD widening in Q3FY24
Current account deficit may reach 1.2% or $11 bn of the GDP in Dec qtr of FY24 from 1% in previous qtr: India Ratings
Mumbai: The current account deficit (CAD) is likely to widen to 1.2 per cent or $11 billion of the GDP in October-December FY24 as compared to one per cent in the previous quarter, India Ratings said in a report.
In the year-ago period, CAD was two per cent of the GDP. A current account deficit occurs when a country’s expenditure in imports is more than its income from exports of goods and services. The report further said the CAD percentage may narrow in Q4 as it sees some nascent signs of a pick-up in global economic activity which will lead to better export numbers.
The global manufacturing purchasing managers index expanded for the first time in 17 months in February to 50.3. The expansion was stronger in the US and emerging economies, barring the European region, according to the report. The agency expects merchandise exports to increase to around $117 billion in Q4, up 2 per cent on-year, which will be a seven-quarter high.
