BENGALURU, March 24 Reuters India39;s current account deficit is likely to have improved in the final quarter of 2022 from a nineyear high in JulySeptember as the goods trade gap moderated and net services exports rose, a Reuters poll found.

The median forecast of 22 economists polled March 1623 showed a current account deficit of 23.0 billion in OctoberDecember 2022, or 2.7 of gross domestic product GDP. Forecasts ranged from 15.028.0 billion, or 2.03.2 of GDP.

In JulySeptember, the gap was 36.4 billion. As a percentage of GDP, at 4.4 it was the highest since mid2013.

More than half of the expected narrowing is due to a reduction in the goods trade deficit, suggesting weakening domestic demand in Asia39;s thirdlargest economy.

India39;s merchandise trade deficit shrank to 72.79 billion last quarter, compared to 78.32 billion in JulySeptember, according to ministry of commerce data.

An increase in net services exports also partly contributed to the improvement, according to Reserve Bank of India figures. They rose to 39.03 billion from the preceding quarter39;s 34.43 billion.

Imports have contracted more than expected. Core imports, which are exclusive of volatile components such as oil or gems and jewellery, declined marginally in the December quarter. That tells you how demand is underpinning in India, said Radhika Piplani, an economist at Yes Bank.

On the other hand, services have outperformed. These are the two reasons why we are seeing that the current…