IndietroBalance of Payments: Current Account definitions
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1/13IndietroSkip to main contentIndietroCurrent Account
Section of international accounts tracking short-term transactions like trade, investment income, and transfers with other countries. Net Exports
Total value difference between what a country sells abroad and what it buys from other countries, including both goods and services. Balance on Goods
Difference between the value of physical items sold to and bought from other countries, often called the trade balance. Balance on Services
Difference between the value of intangible offerings, such as tourism or banking, sold to and bought from other countries. Trade Deficit
Situation where the value of imports consistently exceeds the value of exports, resulting in more money leaving than entering. Trade Surplus
Condition where the value of exports is greater than the value of imports, leading to a net inflow of funds. Investment Income
Earnings from foreign assets, such as interest and dividends, received by residents or paid to foreign investors. Net Investment Income
Difference between what residents earn from foreign investments and what foreigners earn from domestic investments. Net Transfers
Funds sent between countries without a direct exchange, including foreign aid, remittances, and pension payments. Remittances
Money sent by individuals working abroad to family members in their home country, contributing to net transfers. Foreign Aid
Financial assistance provided by one country to another, often for humanitarian or development purposes, included in net transfers. Balance of Payments
Comprehensive record of all economic transactions between residents of a country and the rest of the world. Trade Balance
Another term for the balance on goods, focusing on the net result of exports and imports of physical products.
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