The Current Account Deficit (CAD) for 2MFY20 declined by 55% to reach USD 1.29bn from USD 2.85bn. For the month of Aug’19, the CAD declined by 9.4% MoM | 14.7% YoY to reach USD 614mn as import of goods touched a 6-month low of USD 3.5bn.
Primary reason for decline in CAD was lower trade deficit (-40% for 2MFY20) driven by lower imports (-23.4% YoY).
Workers’ remittances declined by 8.4% YoY to reach USD 3.73bn as the Aug’19 remittances witnessed a decline of 17.1% MoM | 19.1% YoY to USD 1.69bn.
During the past two months, lower imports saved USD 2.36bn, thereby reflecting in decline in CAD by USD 1.56bn.