CAD to narrow to 1.7% of GDP in FY15: Bofa-ML
23/09/2014 12:25
According to a report by US investment banking and financial major Bank of America Merrill Lynch (BofA-ML), India’s current account shortfall is tipped to shrink to 1.7 per cent of the country’s gross domestic product (GDP) in FY 2014-15 amid expectations that the government may not abolish gold import curbs.
"We have cut down our FY15 current account deficit forecast to 1.7 per cent of GDP from 2.6 per cent earlier as it does not look like New Delhi will remove gold import restrictions in the near future,”, the report said.
CAD, which is the excess of imports of goods and services, and transfers over their exports, came in at USD 7.8 billion in Q1 FY 2014-15, representing 1.7 per cent of GDP of Asia’s third biggest economy.
However, the financial major sees the current account gap widening to 2.3 per cent of India’s GDP in FY 2015-16 as gold import restrictions are eased by the government. Gold imports have plummeted in recent months after the government hiked the import duty on the precious metal, which is the country’s second most imported item after oil.
Bank of America Merrill Lynch sees oil prices to settle at USD 108 a barrel in FY 2015-16, much higher than the current USD 98 a barrel.
23/09/2014 12:25
According to a report by US investment banking and financial major Bank of America Merrill Lynch (BofA-ML), India’s current account shortfall is tipped to shrink to 1.7 per cent of the country’s gross domestic product (GDP) in FY 2014-15 amid expectations that the government may not abolish gold import curbs.
"We have cut down our FY15 current account deficit forecast to 1.7 per cent of GDP from 2.6 per cent earlier as it does not look like New Delhi will remove gold import restrictions in the near future,”, the report said.
CAD, which is the excess of imports of goods and services, and transfers over their exports, came in at USD 7.8 billion in Q1 FY 2014-15, representing 1.7 per cent of GDP of Asia’s third biggest economy.
However, the financial major sees the current account gap widening to 2.3 per cent of India’s GDP in FY 2015-16 as gold import restrictions are eased by the government. Gold imports have plummeted in recent months after the government hiked the import duty on the precious metal, which is the country’s second most imported item after oil.
Bank of America Merrill Lynch sees oil prices to settle at USD 108 a barrel in FY 2015-16, much higher than the current USD 98 a barrel.
