// definition
Current account
External current account
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Short definition
Balance of trade in goods and services, primary income and current transfers with the rest of the world. It equals national saving less investment. A deficit can be financed through liabilities to non-residents or a reduction in foreign assets; it does not identify a particular debt instrument or maturity.
risk atlas
Knowledge map
Intuition
Connect trade to external financing while preserving different statistical boundaries.
Formula
Current account = national saving − investmentWhy it matters now
Read imports while separating spending, production and financing.