Economy Update Current account deficit widens further to $16.9bn · ::Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Economy Update

Current account deficit widens further to $16.9bn

·      Current Account Deficit (CAD) widened further to ~USD16.9bn (3.7% of GDP) in Q2FY12 as against ~USD16bn in Q1FY12 as trade deficit widened to $43.9bn from $41.8bn in Q1 FY12

·      Despite export growing by a higher 47.2% as against 35.4% growth in imports trade deficit widened during the quarter

·      However, the CAD ex-investment gold imports would have remained flattish. Gold imports contribute ~28% of CAD compared to 21% last year

·      EXIM numbers of Nov-Dec-11 will be key thing to watch out for as they can lead CAD for Q3FY12 to as high as USD28bn vs USD32bn in H1FY12