Economists warn of widening CAD due to high crude prices
pre-market1 source ↓written by the desknot a recommendation
- in FY27
- 2% of GDP
- based on average
- 1.7%
- crude prices
- $80 per barrel
- prices stay above
- $100 per barrel
Economists are raising concerns that India's current account deficit (CAD) could exceed 2% of GDP in FY27 if crude oil prices remain elevated. Emkay Global maintains its CAD forecast at 1.7% based on average Brent crude prices of $80 per barrel, but warns of increasing risks as prices stay above $100 per barrel. Barclays also highlights that high gold prices could counteract the government's efforts to reduce gold imports through higher duties.
Not investment advice. For informational purposes only.