Glossary
What is the Current Account Balance?
Current account deficit / surplus
Definition
The current account measures a country's trade in goods and services plus net income and transfers with the rest of the world, expressed as a share of GDP. A deficit means it imports more than it exports (and relies on foreign capital); a surplus means the reverse.
Why it matters
Persistent current-account deficits can pressure a currency and raise external vulnerability, while surpluses build resilience. It is a core measure of external balance.