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Balance of Payments - Economics Help

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Balance of payments - definition of current, capital and financial account. Why is there always equilibrium? Causes of current account deficit. Should we be concerned about deficit?

19 February 202628 November 2024 The Balance of Payments is a record of a country’s transactions with the rest of the world. It shows the receipts from trade. It consists of the current and financial account. UK current account 1955-2018 1. Current account This is a record of all payments for trade in goods and services plus income flow it is divided into four parts. Balance of trade in goods (visibles) Balance of trade in services (invisibles) e.g. tourism, insurance. Net income flows. Primary income flows (wages and investment income) Net current transfers. Secondary income flows…

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