According to a research, the country’s current account deficit is anticipated to reach US$ 105 billion, or 3% of GDP, this fiscal year, owing to a persistently expanding trade imbalance. Bank of America (BofA) Securities raised its prediction for the current fiscal year’s current account deficit (CAD) by 0.4 percentage points.
The trade deficit increased to a record high of US$ 25.6 billion in June, up from US$ 24.3 billion in May. On a quarterly basis, the deficit climbed 122.8% to US$ 70.33 billion in the June quarter, up from US$ 31.43 billion the previous year. Although the delta wave resulted in an abnormally low trade deficit in Q1 FY22, they stated that increasing gold and oil imports had resulted in a dramatic increase in trade deficit so far in FY23.
Total exports increased by 22.1% to US$ 116.66 billion in the June quarter, up from US$ 95.54 billion the previous year. Total imports increased by 47.3% to US$ 186.99 billion from US$ 126.97 billion in the same period.
