Islamic Scientific Schools

In the Name of Allah---the Most Beneficent, the Most Merciful. A current account deficit occurs when a country’s total imports of goods, services, and transfers exceed its total exports. It is one of the key indicators in the balance of payments, which records all financial transactions between residents of a country and the rest of the world over some time. Measuring the Current Account Deficit The current account consists of four main components: Trade Balance : The difference between the value of a country’s exports and imports of goods and services. Trade Surplus : Exports > Imports Trade Deficit : Imports > Exports Net Income from Abroad : Includes income from investments (such as interest and dividends) and compensation of employees. Net Current Transfers : Transfers without a quid pro quo, such as foreign aid, remittances, and gifts. Net Trade in Services : The difference between the exports and imports of services, such as tourism, financial services, and transportation. ...