Rise in crude prices poses risk to India’s current account deficit: Report


Rise in crude prices poses risk to India’s current account deficit: Report

Crude oil prices may rise further in the coming months, following which India’s current account deficit will be around 2.4 per cent in 2018-19, says a Goldman Sachs report.

According to the global financial services major, the rise in international crude prices poses risks to India’s current account deficit.

“Our commodities team expects oil prices to continue to rise over the course of this summer, before moderating slightly at the end of the year. We recently increased our 2018-19 current account deficit (CAD)forecast to 2.4 per cent of GDP (from 2.1 per cent of GDP earlier),” Goldman Sachs said in a research note.

CAD widened to 2 per cent or USD 13.5 billion in the October-December quarter of 2017, up from 1.4 per cent, or USD 8 billion, in the corresponding period a year ago. Read More

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