MUMBAI: The country's current account deficit is likely to widen to 3 per cent in the second quarter of 2017 due to sharp deterioration in trade deficit, says a report. In the quarter ended March or first quarter of 2017, current account deficit widened to USD 3.4 billion, or 0.6 per cent of gross domestic product (GDP). The report said despite the wider current account deficit, financing is not a concern. The report said over the last two fiscal years, low commodity prices has driven the current account deficit to narrow to around 1 per cent of GDP. With commodity prices marginally higher and a cyclical recovery expected in coming quarters, the report expects the current account deficit to widen to a steady state of around 1.5-2 per cent of GDP.

Source: Economic Times September 07, 2017 13:52 UTC