CAD to reach 2.8 percent of GDP in FY19, expects SBI
According to SBI Ecowrap report, rising oil price and lukewarm export growth are expected to push CAD higher.
- Country:
- India
Lending major State Bank of India (SBI) on Monday said that it expects the Current Account Deficit (CAD) to reach 2.8 percent of GDP in FY19.
According to SBI Ecowrap report, rising oil price and lukewarm export growth are expected to push CAD higher.
The current account is the net difference between inflows and outflows of foreign currencies.
As per the report, even merchandise trade imbalance is likely to increase to $188 billion as against $160 billion in FY18.
"Rising oil price has already had an impact on our external balance in the last fiscal and is likely to have a further deteriorating effect on India's current account balance this year too," the report said.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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