India's CAD to narrow to 0.5% of GDP in 2020 - Nomura

Nomura's analysts expect India's current account deficit (CAD) to narrow to 0.5% of its gross domestic product (GDP) in 2020 versus 1% in 2019, according to Reuters. 

A current account deficit (CAD) occurs when the total value of goods and services a country imports exceeds the total value of exports. A consumption-driven and energy-dependent economy like India is bound to run current account deficits. However, a very high CAD often weighs on the Indian rupee. 

The CAD could narrow, as expected by Nomura, as coronavirus-induced joblessness is likely to keep consumption and imports low. 

While India's exports are expected to improve, a rapid recovery looks unlikely due to weak global demand, analysts added.