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Macroeconomics

Current account balance

The net result of trade in goods and services, primary income and transfers with the rest of the world.

Plain languagePractical exampleConnected reading
01

What is it?

The net result of trade in goods and services, primary income and transfers with the rest of the world.

02

Why does it matter?

It is central to external financing needs, currency demand and vulnerability to external shocks.

03

How should it be read?

Separate energy and gold effects, seasonality, financing quality and reserve movements.

04

Common mistake

Treating one monthly surplus or deficit as a lasting trend.

IN PRACTICE

A simple example

If tourism receipts and energy imports both rise, the headline balance nets two strong effects.

RELATED CONCEPTS

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Currency riskReal interest rateRisk premium
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