India’s current account returned to deficit in the second quarter; Strong expansion planned for the third quarter: ICRA
BQ Blue’s special research section brings together in-depth and quality research reports on stocks and the economy from top Indian brokers, asset managers and research agencies. These reports provide BloombergQuint subscribers with the opportunity to deepen their understanding of businesses, industries, and the economy.
India’s current account fell to a deficit of $ 9.6 billion (down 1.3% of gross domestic product) in the second quarter of FY22, from a surplus of $ 6.6 billion. dollars (up 0.9% of GDP) in the first quarter of FY22, mainly due to a widening merchandise trade deficit (to $ 44.4 billion in Q2 FY22 from $ 30.7 billion of $ at T1 FY22).
While the Q2 FY22 printout was a bit smaller than our expectations, a huge widening is ahead, with the large merchandise trade deficits seen in October-November 2021, and the same expected for December 2021.
We expect the current account deficit to exceed $ 25 billion in the third quarter of FY22, rivaling the size of the current account deficit for the fiscal year in FY20. Therefore, we we expect India’s current account to decline to a deficit of around $ 40-45 billion or 1.4% of GDP in FY 22, from a surplus of $ 24.0 billion (up 0.9% of GDP) in FY2021.
Click on the attachment to read the full report:
This report is written by an external party. BloombergQuint does not guarantee the accuracy of its content and is not responsible for it. The content of this section does not constitute investment advice. For this, you should always consult an expert according to your individual needs. The opinions expressed in the report are those of the author entity and do not represent the views of BloombergQuint.
Users are not licensed to copy, modify, or distribute the content without the permission of the original owner.