Home / Business / Money / CAD widens to 1.7%; trade deficit rises to USD 34 bn

CAD widens to 1.7%; trade deficit rises to USD 34 bn

The main reason for the increase in the CAD is expected to be the widening of the trade deficit to USD 34 billion from the USD 30.6 billion. However, the CAD and trade deficit are much lower than a year-ago levels.

The first quarter current account deficit for the fiscal year FY15 widens to 1.7 percent from 1.2 percent in Jan-Mar quarter. The CAD widens to USD 7.8 billion versus USD 1.3 billion quarter-on-quarter.

The main reason for the increase in the CAD is expected to be the widening of the trade deficit to USD 34 billion from the USD 30.6 billion. However, the CAD and trade deficit are much lower than a year-ago levels.

Imports have declined to 6.5 percent and the exports are up to 10.6 percent. Gold imports are down to USD 7 billion from USD 16 billion comparable to last year. Non-gold imports, however, are up 1.3 percent.

Stay tuned for more…

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