Current Account Deficit expected to reach year's high of 1.2 % of GDP in FY24 third quarter, predicts rati

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India Ratings and Research (Ind-Ra) has released its analysis on the current account balance (CAB) for the third quarter of the fiscal year 2023-24 (3QFY24), projecting a deficit of approximately USD11 billion, equivalent to 1.2 per cent of the Gross Domestic Product (GDP)...

According to a press release, this forecast represents a marginal increase from the previous quarter's deficit of 1.0 per cent of GDP and marks a year's high, surpassing the deficit recorded in the corresponding quarter of the previous fiscal year (3QFY23: USD16.8 billion, 2.0 per cent of GDP)...

Sunil Kumar Sinha, Principal Economist at Ind-Ra, expressed expectations for a dip in the current account deficit in the subsequent quarter, attributing this outlook to signs of economic recovery amidst the global economic environment's uncertainties...

Ind-Ra anticipates merchandise exports to rise to approximately USD117 billion in 4QFY24, marking a 2 per cent year-on-year increase and reaching a seven-quarter high...

Thus, Ind-Ra opines the services trade surplus to sustain the record-breaking run and stand at a fresh high of USD47 billion in 4QFY24," Jasrai said...

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