MUMBAI: Economists are lowering their forecasts for India’s current-account shortfall, thanks to favorable trade trends that are proving to be a blessing for the rupee — currently among the worst performers in emerging Asia.
Barclays Plc expects the gap in current account — the broadest measure of trade in goods and services — to be 1.9% of gross domestic product in the year starting April 1, down from a 2.3% deficit it had estimated earlier. Citigroup Inc slashed its forecast even further to 1.4% of GDP from 2.2% previously, reflecting a steady drop in goods imports and strength in services exports.
