The current account balance encompasses the total inflow and outflow of economic resources in a country, measured in current U.S. dollars. It combines net exports of goods and services, reflecting international trade performance, along with net primary income, which includes
earnings from investments and employment overseas, and net secondary income, capturing
remittances and transfers. A positive balance indicates that a nation is exporting more than it imports, often implying a
strong economic position, while a negative balance suggests potential dependency on foreign funds. This indicator is crucial for assessing a country’s economic health, competitiveness in the global market, and ability to finance its external liabilities.
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