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Paper 1 real-world example: Balance of payments

India"s balance of payments current deficit is forecast to increase to a $120 billion deficit this year. The country’s current account deficit is now 3% of GDP which puts it close to the US which has the world’s largest deficit to GDP ratio at 3.6%.One of the main causes of India’s current account deficit is the country’s negative balance of trade in visible goods.A big increase in the import of oil and gas has...

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