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. Investopedia Says:
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. Related Terms:
Balance Of Payments - BOP
Current Account
Deficit
Fiscal Deficit
Trade Deficit |