The current account gap, Mr. Bergsten said, is "the single biggest threat to the current expansion of the economy".
The current account gap underlined fears about imbalances in the UK economy, said Philip Shaw, economist at Investec.
India relies heavily on portfolio inflows — foreign purchases of shares and bonds — as a means of covering its current account gap.
Britain failed to close its current account gap when sterling fell in 2008-09 anownow has a shortfall of 4.4% of GDP, one of the largest gaps in the OECD.Fiscal deficit.
Two of them are especially worrisome a monstrous current account gap and the Mother of all asset bubbles.
The euro was up 0.83% against the dollar, at $1.2794, after Federal Reserve Chairman Alan Greenspan said the U.S. currency's decline should help narrow the U.S. current account gap.
The Fund said the U.S. dollar was on the strong side of fundamentals, and a further depreciation of the U.S. unit against undervalued currencies would help to cut the U.S. current account gap.
The South African rand and Turkish lira look likely to fall further since both still combine big current-account gaps with high inflation.
Prices of emerging-market assets also sank, as did emerging-market currencies.This is creating headaches for some of those emerging economies, and especially those that had been running big current-account gaps.
The currencies of other places with current-account gaps, such as South Africa and Turkey, have been walloped too.To be sure, the rupee deserves a beating, given how India's prospects have dimmed.
Each of the fragile five has a "twin deficit": budget shortfalls that mean debts are piling up and current-account gaps that make them reliant on foreign capital inflows.
