[{"data":1,"prerenderedAt":58},["ShallowReactive",2],{"term:balance-of-payments":3},{"term":4,"related":45},{"id":5,"title":6,"body":7,"category":27,"description":28,"extension":29,"faq":30,"meta":31,"navigation":32,"path":33,"related":34,"seo":38,"stem":39,"takeaways":40,"__hash__":44},"terms\u002Fterms\u002Fbalance-of-payments.md","Balance of Payments",{"type":8,"value":9,"toc":22},"minimark",[10,15,19],[11,12,14],"h2",{"id":13},"understanding-balance-of-payments","Understanding Balance of Payments",[16,17,18],"p",{},"The balance of payments has two main parts: the current account (trade in goods and services, investment income and transfers) and the financial account (purchases and sales of assets).",[16,20,21],{},"By accounting rules the two sides balance: a current account deficit is matched by net inflows of foreign investment.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[26],{"id":13,"depth":24,"text":14},"economy","The record of all economic transactions between a country and the rest of the world.","md",[],{},true,"\u002Fterms\u002Fbalance-of-payments",[35,36,37],"current-account","trade-deficit","exchange-rate",{"title":6,"description":28},"terms\u002Fbalance-of-payments",[41,42,43],"It records all cross-border transactions.","Current account + financial account (and capital account) sum to zero.","A deficit on one side means a surplus on the other.","eqm8StFTZ30k8S06vxTQ11HtiJE7p6YQlQ2Tyi6QDag",[46,50,54],{"title":47,"description":48,"path":49},"Current Account","A country's trade balance plus net income and transfers from abroad.","\u002Fterms\u002Fcurrent-account",{"title":51,"description":52,"path":53},"Exchange Rate","The price of one currency expressed in another.","\u002Fterms\u002Fexchange-rate",{"title":55,"description":56,"path":57},"Trade Deficit","When a country imports more goods and services than it exports.","\u002Fterms\u002Ftrade-deficit",1793374004542]