Question
Fitch Ratings has slashed its 2022-23 current account
deficit projection for India to 2.3% of GDP from 3.3% in December 2022, and expects the deficit to narrow further to _____ deficit this year.Solution
 Fitch Ratings has lowered its 2023-24 GDP growth forecast for India to 6% from 6.2%, citing headwinds from elevated inflation and interest rates along with subdued global demand, with the economy expected to rebound to 6.7% in 2024-25 as opposed to 6.9% projected earlier.    Fitch also slashed its 2022-23 current account deficit projection for India to 2.3% of GDP from 3.3% in December 2022, and expects the deficit to narrow further to 1.9% deficit this year.  Fitch also expects the central government to meet its fiscal deficit target of 5.9% of GDP in 2023-24 from 6.4% last year, States’ deficits are likely to rise from 2.7% of GDP estimated in 2022-23 to 2.8% of GDP.
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