Current account-ability

he current account deficit for the October-December 2012 quarter was generally expected to be above six per cent of GDP. Even then, it surprised negatively, coming in at 6.7 per cent. By far the largest contributor to this is the trade deficit, the gap between merchandise exports and imports, which was over 12 per cent of GDP. During the quarter, exports were stagnant, while imports grew by over nine per cent over the corresponding quarter of 2011-12.

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