https://www.veritaswiki.org/index.php?action=history&feed=atom&title=Current_AccountCurrent Account - Revision history2026-10-19T18:26:29ZRevision history for this page on the wikiMediaWiki 1.45.3https://www.veritaswiki.org/index.php?title=Current_Account&diff=88&oldid=prevToto: Created English encyclopedia entry on Current Account following Wikipedia-style standards2026-10-06T04:14:06Z<p>Created English encyclopedia entry on Current Account following Wikipedia-style standards</p>
<p><b>New page</b></p><div>The '''current account''' is one of the two principal components of a country's [[balance of payments]]. It records transactions in goods, services, primary income, and secondary income between a country's residents and the rest of the world.<ref name="wiki">Wikipedia contributors, "Current account (balance of payments)".</ref><br />
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== Definition and components ==<br />
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The current account is composed of:<br />
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{| class="wikitable"<br />
! Component<br />
! Description<br />
|-<br />
| Goods<br />
| Trade in physical goods (merchandise trade).<br />
|-<br />
| Services<br />
| Trade in services such as transport, tourism, and financial services.<br />
|-<br />
| Primary income<br />
| Income from labour and investment, such as wages, dividends, and interest.<br />
|-<br />
| Secondary income<br />
| Current transfers, including foreign aid and remittances.<br />
|}<br />
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The balance on goods and services combined is known as the '''trade balance'''. Adding primary and secondary income yields the current account balance.<ref name="wiki"/><br />
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== Surplus and deficit ==<br />
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{| class="wikitable"<br />
! Balance<br />
! Meaning<br />
|-<br />
| Current account surplus<br />
| The country receives more from abroad than it pays out; it is a net lender to the world.<br />
|-<br />
| Current account deficit<br />
| The country pays out more than it receives; it is a net borrower from the world.<br />
|}<br />
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A current account deficit must be financed by inflows in the financial account—that is, by borrowing from abroad or selling domestic assets. Whether a deficit is a problem depends on its cause: deficits driven by investment may be sustainable, while those driven by consumption may signal vulnerability.<ref name="wiki"/><br />
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== See also ==<br />
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* [[Capital Account]]<br />
* [[Balance of Payments]]<br />
* [[Trade Surplus]]<br />
* [[Trade Deficit]]<br />
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== References ==<br />
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<references /><br />
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[[Category:Economics]]<br />
[[Category:International economics]]<br />
[[Category:Balance of payments]]</div>Toto