Economic Progress

What is a country's current account balance, and is a deficit good or bad for its economy?

A country’s current account balance tracks the amount of money it has coming in and going out.

A country’s current account balance tracks the amount of money it has coming in and going out. Image: Unsplash/adamnir

Ian Shine
Senior Writer, Forum Agenda
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Most of the world’s least-developed countries have a current account deficit.
Most of the world’s least-developed countries have a current account deficit. Image: UNCTAD
Table showing the current account balance in largest surplus and deficit economies.
Current account balance in largest surplus and deficit economies. Image: UNCTAD

Figure displaying the global recession outlook in 2023. current account balance deficit
Recessions can lead to current account surpluses because of drops in consumer demand for imported goods. Image: World Economic Forum
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Economic ProgressFinancial and Monetary Systems
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