India’s Current Account Deficit at 2.7% of GDP in 4th Quarter

Current Context: The forecast by economists showed a current account deficit of 23 billion dollars in end of 22. Current account deficit is 2.7% of gross domestic product (GDP). The forecasts ranged from or 2.0%-3.2% of GDP.

• In July-September, there was a gap of $36.4 billion in the current account deficit.
• At 4.4% , current account as the percentage of GDP is the highest since 2023.
• Change in the values is due to a reduction in the goods trade deficit, resulting weakening domestic demand in India.
• India’s merchandise trade deficit is as low as 72.79 billion dollars as compared to 78.32 billion dollars in July.
• The improvement in the current account deficit is due to several reasons. Economists who had a longer-term view forecast , the current account gap is predicted that before going low to 2.6%, it will be at average 3.0% of GDP this year.

Question: 

Q.1 Current account deficit is ________ of gross domestic product (GDP) recently in march.
a. 3.0%
b. 3.8%
c. 2.7%
d. 3.2%