CAD narrows to 0.5% of GDP
Q. India’s CAD narrows to 0.5% of GDP from which percentage in 2015 leading to lower commodity prices?- Published on 21 Jan 16a. 0.7%
b. 0.8%
c. 0.9%
d. 0.10%
ANSWER: 0.7%
India’s current account deficit may narrow to 0.5% of GDP in 2016 from 0.7% in 2015 on account of lower commodity prices especially oil. Given lower oil prices, one expects CAD to narrow to 0.5% of GDP in 2016 from 0.7% in 2015. As per official figures, exports contracted for the 13th month in the row in December 2015. Outward shipments shrank 14.75% to USD 22.2 billion and global demand slowdown. Imports can plunged 3.88 percent for USD 33.9 billion in December ober the same month in the previous year.
