Therefore, unless the trade deficit continues to expand rapidly, the current account is likely to remain in surplus. C.  Recent price developments  Next, I will move on to price developments.
As we have observed in this context, global developments affect our economy through commerce, capital flows, confidence, commodity price, contamination, currency rates and credit rating channels. Global business cycles are, therefore impacting both investment demand and with a lag impacting consumption demand as incomes fall and appetite for leverage reduces.