Current account balance

Definition

The current account balance refers to the net flow of goods, services, income, and unilateral transfers between a country and the rest of the world over a specific period. It represents the overall trade balance in terms of exports and imports.

Related terms

Trade surplus: A positive current account balance where a country's exports exceed its imports.

Trade deficit: A negative current account balance where a country's imports exceed its exports.

Balance of trade: Refers specifically to the difference between the value of a country's exports and imports of goods only.