South Asian economies face mutual budget and current account deficits.
The study looked at how budget deficits and current account deficits are connected in South Asian countries. Instead of assuming one causes the other, they found that both deficits actually influence each other. When one goes up, the other tends to follow. This means that just fixing one deficit won't solve the problem. The researchers used data from five South Asian countries to show this relationship. They also found that high government debt can hurt the economy and make deficits worse. So, it's not as simple as just focusing on fixing the budget or the current account - both need attention to improve the overall economic situation in the region.