economics , a countrys current account is one of the - TopicsExpress

economics , a countrys current account is one of the two components of its balance of payments, the other being the capital account. The current account consists of the balance of trade , net factor income (earnings on foreign investments minus payments made to foreign investors) and net cash transfers. The current account balance is one of two major measures of a countrys foreign trade (the other being the net capital outflow). A current account surplus increases a countrys net foreign assets by the corresponding amount, and a current account deficit does the reverse. Both government and private payments are included in the calculation. It is called the current account because goods and services are generally consumed in the current period. [1][2]

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