Current and Capital Account Balance during 2007-2013

June 6, 2014

Author: OGD PMU Team

Current Account balance narrowed down to a record low of -4.8% of Gross domestic product (GDP) at current prices in 2012-13. During 2007-2013, as a proportion of GDP, Current Account balance was maximum at -1.3% in 2007-08. The Capital Account Balance reached 4.9% of GDP in 2012-13. During 2007-2013, as a proportion of GDP, net Capital Account Balance was maximum at 8.7% in 2007-08.

The main components of the capital account include foreign investment, loans and banking capital. Foreign investment, comprising Foreign Direct Investment (FDI) and Portfolio Investment.

Net FDI increased to 1.4% of GDP in 2012-13 from 1.3% of GDP in 2007-08. During 2007-2013, as a proportion of GDP, Net FDI was maximum at 2.1% in 2008-09. Portfolio Equity as a proportion of GDP declined from 2.4 % in 2007-08 to 1.3% in 2012-13. Loans as a proportion of GDP declined from 3.4 % in 2007-08 to 1.3% in 2012-13. Banking Capital as a proportion of GDP increased from 0.9 % in 2007-08 to 1.3% in 2012-13.