Current Account Deficit

Occurs when a country's total imports of goods, services and transfers is greater than the country's total export of goods, services and transfers. This situation makes a country a net debtor to the rest of the world.

A substantial current account deficit is not necessarily a bad thing for certain countries. Developing counties may run a current account deficit in the short term to increase local productivity and exports in the future.


Investment dictionary. . 2012.

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  • current account deficit — ➔ deficit * * * current account deficit UK US noun [C] ► ECONOMICS the amount by which money going out of a country through imports, investment, and services is greater than money coming into the country: »Developing countries may run a current… …   Financial and business terms

  • Current account — This article is about the macroeconomic current account. For day to day bank accounts, see Current account (banking). Cumulative Current Account Balance 1980–2008 (US$ Billions) based on the International Monetary Fund data In economics, the… …   Wikipedia

  • current account — noun Current account is used before these nouns: ↑deficit, ↑surplus …   Collocations dictionary

  • balance of payments current account — ➔ account1 * * * balance of payments current account UK US noun [singular] (also external account) ► ECONOMICS a record of the movement of money into and out of a country from trade in goods and services: »The Reserve Bank Governor is reported to …   Financial and business terms

  • Deficit — An excess of liabilities over assets, of losses over profits, or of expenditure over income. The New York Times Financial Glossary * * * deficit def‧i‧cit [ˈdefst] written abbreviation def noun [countable] 1. COMMERCE an amount of money that a… …   Financial and business terms

  • deficit — An excess of liabilities ( liability) over assets, of losses over profits, or of expenditure over income. Bloomberg Financial Dictionary A situation in which a country has a negative balance of trade or payments. Chicago Mercantile Exchange… …   Financial and business terms

  • deficit — 01. Unless the government raises taxes, the [deficit] is expected to rise by at least 3%. 02. Do we really want the government to make cuts in social programs to lower our [deficit]? 03. The current [deficit] in British Columbia is estimated at… …   Grammatical examples in English

  • deficit — [[t]de̱fəsɪt[/t]] ♦♦ deficits N COUNT: oft n N A deficit is the amount by which something is less than what is required or expected, especially the amount by which the total money received is less than the total money spent. They re ready to cut… …   English dictionary

  • deficit — noun ADJECTIVE ▪ enormous, huge, large, massive, serious, substantial ▪ ballooning, exploding, growing, soaring …   Collocations dictionary

  • Deficit spending — Part of a series on Government Public finance …   Wikipedia

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