India’s trade deficit widens further in October

NEW DELHI – India’s trade deficit widened in October to US$10.6 billion from US$6.8 billion in September on seasonal import demand, but overall external developments remained positive, with exports up by 13.5% y/y from 11.2% in September, for a fourth consecutive month of double-digit growth, supported by currency depreciation and improving external demand from the US, EU and China. Import growth has continued to contract (-14.5% y/y vs -18.1% in September). BBVA Research says the full-year current account deficit is expected to amount to 4.2% of GDP compared to 5.0% in 2012. www.bbvaresearch.com (ATI).