balance of payments

The 'balance of payments' is a crucial economic indicator that records all financial transactions between a country and the rest of the world, reflecting its economic health and stability.

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Definition

C1Economics

(technical, academic)A comprehensive statement summarizing a country's financial transactions with other countries over a specific period, including trade, services, income, and financial flows.

Example

  • The balance of payments showed a surplus due to increased exports and foreign investments.
  • Economists analyze the balance of payments to understand a country's economic interactions with the rest of the world.

C1Finance

(technical, academic)An accounting record of all monetary exchanges between a country and other nations, including the current account, capital account, and financial account.

Example

  • A deficit in the balance of payments can lead to a depreciation of the national currency.
  • The central bank monitors the balance of payments to guide monetary policy decisions.

Similar

Terms that have similar or relatively close meanings to "balance of payments":

current accountcapital account