The global growth prospects have turned out to be better than estimated earlier (IMF WEO January 2023), but the slowdown is expected to persist.

Both in absolute terms and as a share of GDP, it is expected to have declined to a two-quarter low, according to India Ratings.

India Ratings and Research (Ind-Ra) expects the current account deficit (CAD) to have moderated to around US$24 billion (2.9% of GDP) in 3QFY23 from the record high of USD36.4 billion (4.4% of GDP) in the previous quarter. 

Nevertheless, it remained higher yoy (3QFY22: USD22.2 billion, 2.7% of GDP). Both in absolute terms and as a share of GDP, it is expected to have declined to a two-quarter low. 

The global growth prospects have turned out to be better than estimated earlier (IMF WEO January 2023), but the slowdown is expected to persist. In fact, the latest high frequency indicators indicate some improvement in the global manufacturing activity.