A current account deficit is the amount by which money relating to trade, going out of a country is more than the amount coming in (Value of Exports - Value of Imports).
The current account is made up of balances in trade in goods and services, net incomes from overseas investments and net transfers.
A current account deficit implies a net reduction of demand in a country’s circular flow. The UK’s current account position is shown in the charts below:
UK Current Account as a % of GDP, quarterly data
Annual data for the UK current account
could we please just quickly talk over the last chart tomorrow?
ReplyDeleteis it saying that in 2009 1.1% of gdp was money leaving the country (through the value of imports)?