Macroeconomics

Current-Account Deficit

Definition

What is Current-Account Deficit?

A situation in which a country pays more abroad through trade, income, and transfers than it receives.

Example in practice

The deficit must be financed through capital inflows or reserve use.

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The total market value of final goods and services produced within a country during a period.

Gross domestic product adjusted for changes in prices.

Gross domestic product measured at current prices without adjusting for inflation.

A market environment in which investors favour higher-risk assets.

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