Ebb and Flow
Thanks to a recovery in the services balance, the current account deficit (CAD) in Q1 FY22 improved quarterly, yet was annually pressured by higher global commodity prices which still weighed on its annual reading. CAD widened by 44% y/y (vs. 34% y/y in Q4 FY21), resulting in a USD4bn deficit in Q1 FY22. On a quarterly basis, CAD fell 22% q/q in Q1 FY22, more than double the pace compared to the 9% q/q slide recorded in Q4 FY21.
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Mona Bedeir
Chief Economist
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