The current account deficit for the March quarter of 2015 came in at -1,286 million, which is a big relief, even if it’s marginally higher than the deficit we saw in the year earlier. It’s a tiny number in comparison with the massive CAD figures we have been used to seeing. It is of course useful to see this as a % of nominal GDP, where the deficit is just 0.2%. What is a Current Account? For a more detailed description of the current account and the Balance of Payments – Please read our descriptive post (“ What is the Current Account and Balance of Payments? “) Check out Capital Mind Premium! Get In-Depth Macroeconomic Analysis, Market Metrics, Proprietary Capital Mind Indexes, a look into the CAPM Portfolio and More Actionable Insights, straight to your Inbox. Take a 30-day Free Trial! In brief, the current account is money that flows in (or out) of the country to do stuff that is not: a) Financial investments like FDI or FII or NRI Deposits or the like (the “Financial Account”) or b) Capital investments (like buying real estate in India, the “Capital Account”).… (Read On…)
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