Current account surplus
Definition. A current account surplus occurs when the total value of a country exports of goods and services plus net income and transfer inflows exceeds the corresponding outflows over a period. The country earns more from foreign transactions than it spends on them.
The surplus is matched by a net outflow on the capital and financial account as residents accumulate foreign assets. Singapore consistently records a sizeable current account surplus.
This term belongs to The Balance of Payments in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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