UK
Banks - Current Accounts:
The
current account of the balance of payments is the sum of the
balance of trade (exports minus imports of goods and services),
net factor income (such as interest and dividends) and net
transfer payments (such as foreign aid). A current account
surplus increases a country's net foreign assets by the corresponding
amount, and a current account deficit does the reverse. Both
government and private payments are included in the calculation.
The balance of trade is typically the most important part
of the current account. This means that changes in the patterns
of trade are key drivers of the current account. However,
for the few countries with substantial overseas assets or
liabilities, net factor payments may be significant. It, with
Net Capital Outflow, is a major metric of how much a nation
invests or is invested in. |