External Trade - Deficit widens; Edelweiss, PDF link

Trade deficit in May widened to ~USD16.3bn compared to average of ~USD15.0bn in previous six months, largely due to high oil imports and normalisation of non-oil imports. However, on trend basis, since H2FY12 both export and non-oil import growth has declined sharply, reflecting on-going slowdown in external as well as domestic demand and softening commodity prices. In the coming months, softening crude prices and falling gold demand, along with the undervalued exchange rate, should have a favourable effect on trade deficit. However, subdued external demand is likely to limit the extent of the decline.

External Trade - Deficit widens

Regards,

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External Trade - Deficit widens

Regards,