Macroeconomics
Current Account
Definition
What is Current Account?
A country's balance of trade in goods and services plus net incomeProfit remaining after operating costs, financing costs, taxes, and other recognised items. and transfers with the rest of the world.
Example in practice
How This Looks in Practice
A persistent current-account deficitA situation in which a country pays more abroad through trade, income, and transfers than it receives. can increase foreign-financing needs.
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Related Terms
Macroeconomics
Gross Domestic Product
The total market value of final goods and services produced within a country during a period.
MacroeconomicsReal GDP
Gross domestic product adjusted for changes in prices.
MacroeconomicsNominal GDP
Gross domestic product measured at current prices without adjusting for inflation.
Market SentimentRisk-On Market
A market environment in which investors favour higher-risk assets.