CAD seen hitting 1.4% or $45 bn by March as crude soars: Report
India’s widening current account deficit (CAD), driven by the massive spike in commodity prices led by crude oil, is set to put pressure on the fragile recovery, warns a brokerage report that has revised upwards its CAD forecast to USD 45 billion or 1.4 per cent of GDP by March.
According to a report by British brokerage Barclays, the worries arise from the fact that the trade deficit has been jumping continuously since July.
From an average monthly trade deficit of USD 12 billion till June, it has jumped to USD 16.8 billion in July-October, with September showing the highest-ever trade deficit on record at USD 22.6 billion, the report said.
