Current Account Deficit (CAD) during Feb’19 displayed a drop of 72% YoY / 59% MoM to USD 356mn. Major reason for this compression in CAD was 27% YoY / 23% MoM reduction in trade deficit on goods along with 54% YoY / 7% MoM decline in deficit of services.
Dip in imports of goods to USD 3.5bn (29 months low, -19% YoY / -20% MoM) was the major reason behind the improvement in balance of trade.
During 8MFY19, the Current Account Deficit shrank by 23% YoY to reach USD 8.84bn. Higher remittances contributed the most (up by USD 1.5bn or 59% of total compression in CA deficit).
In addition, reduction in deficit of trade in services contributed approx. USD 1.3bn or 51% of total improvement in Current Account.