India's July-September current account gap hits four-year high

High oil prices pushed India's current account deficit in July-September to its widest in over four years, according to data released by the central bank on Friday. However, the current account deficit is likely to fall due to a sharp drop in crude prices that will take pressure off a depreciating rupee, analysts said.
"The current account deficit has peaked," said Shubhada Rao, chief economist at Yes Bank in Mumbai. The Indian rupee fell 14 percent in the first nine months of 2018 but has recovered by 5.6 percent since October on the back of the drop in oil prices.
The current account deficit in July-September hit 2.9 percent of gross domestic product or $19.1 billion, the highest since April-June quarter of 2013. In July-September 2017 the current account deficit was $6.9 billion or 1.1 percent of GDP, Reserve Bank of India data showed. India's trade deficit in July-September widened to $50 billion from $32.5 billion a year ago.