The Economic Times

Rising oil prices, gold imports to widen trade deficit, CAD may touch 1.5-2% of GDP: ICICI Securities

With the West Asia conflict persisting and global oil prices likely to average around USD 100/bbl, India's current account deficit could rise meaningfully this year, ICICI Bank Global Markets warns. While resilient services exports should offer some cushion, the brokerage expects the current account deficit (CAD) to settle between 1.5-2 per cent of GDP, provided non-essential imports are contained and capital inflows improve once global risk sentiment stabilizes.