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AS Macro Key Term: Current Account Deficit
2nd April 2011
A current account deficit is the amount by which money relating to trade, investment etc going out of a country is more than the amount coming in. 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
Data from Timetric.
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BoP: current account balance as per cent of GDP : quarterly from Timetric
Annual data for the UK current account
Data from Timetric.
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BoP: current account balance as per cent of GDP : yearly from Timetric
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.