The current account balance is an important macroeconomic factor. Though many countries similar to India are spending more abroad resulting in a current account deficit, due to which many trade unions, businesses, and parliamentarians are increasingly concerned with foreign expenditures.
current account deficit, Indian economyThere are many determinants of the current account imbalance. They are unique to different economies. It is important to identify them because it helps policymakers understand the underlying causes of the deficit and develop appropriate policy changes.
current account deficitThe country has to maintain an internal balance between the sectors to keep a check on the economic variables such as unemployment rate, production output, and inflation.
current account deficitThis article explains the ideal methodology to statistically examine the determinants of the current account balance of India.
current account deficitA country that has a current account deficit is one that is borrowing money from other nations or selling assets to pay for its investments and consumption.
current account deficitIn this article, the concepts of balance of payment (BOP) and current account deficit are reviewed, with emphasis on the determinants of the latter.
current account deficit, imports & exports