Widening Trade Deficit May Mean More Investments, as Import of Capital Goods Increases

The trade deficit as of August is at a record high of $15.6 billion. Import bill is at $52 billion, while exports declined by 7.8% to $36.4 billion. Note, however, that import of capital goods has gone up by 50.22%, equivalent to a third of all imports. This means that investments may finally help in fueling growth, which has been driven by consumption the past few years…

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