Behavioural market failures refer to issues such as herd behaviour in investment decisions, and investment fads and fashions, or myopia in decision making around various components of the financial system.
The current account deficit continued to be covered largely by foreign direct investment (in the amount of 75.5% in the first nine months of the year). Provided the internal and external economic environments do not deteriorate significantly at the end of the year, the current account deficit is likely to be 8.5% of GDP in 2002.