Question

Why does a developing country have a current account deficit

Answer 1

Explanation:

Developing countries like India have a current account deficit because the businessmen in developing countries are working under small scale industries and take risks due to lack of saving habits. The capital amount bought in by them is also low.

Answer 2

hey your answer is 1.over valued exchange rate 2.decline in export sector 3.higher inflation 4.high consumer spending 5.uncompetitive exports