Global rating agency Standard and Poor’s has cautioned that large deficit economies, including India, could face more economic problems in the near term. “The road may be rocky in the near term, particularly for the largest deficit countries — India and Indonesia — but we don’t think this is the Asian crisis all over again,” S&P said in a report titled ‘South and South-east Asian Economies Grapple with Growth and External Financing Risks’. Observing that in normal times the countries with high current account deficit (CAD) and high savings might not find it difficult to borrow in the international market, the report said: “when markets become risk averse, economies with current account deficits often find themselves facing external financing pressure.’’
You need bagful or tons of money to buy pocketful of groceries for living !
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