Skip to main content

Weaker domestic demand driving fragile five’s external positions

At an aggregate level, the current account deficit of the “fragile five” (Brazil, India, Indonesia, South Africa and Turkey) showed a welcome improvement towards the end of last year. But progress has been uneven. What’s more, in those economies where external deficits have narrowed, it looks like the burden of adjustment has fallen largely on domestic demand.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.