The current account is an important indicator about an economy’s health. It pertains to the sum in the balance of trade, net income coming from abroad and net current transfers. A positive current account balance indicates that the united states is a net lender to all of those other world, while a negative current account balance indicates that it must be a net borrower from all of those other world. A current account surplus increases a nation’s net overseas assets by the quantity of the surplus, and a current account deficit decreases it simply by that amount.
Current Account Definition
