top of page
Economics explained
Category:
Balance of payments
Current account deficit
The secret to scoring awesome grades in economics is to have corresponding awesome notes.
A common pitfall for students is to lose themselves in a sea of notes: personal notes, teacher notes, online notes textbooks, etc... This happens when one has too many sources to revise from! Why not solve this problem by having one reliable source of notes? This is where we can help.
What makes TooLazyToStudy notes different?
Our notes:
-
are clear and concise and relevant
-
is set in an engaging template to facilitate memorisation
-
cover all the important topics in the O level, AS level and A level syllabus
-
are editable, feel free to make additions or to rephrase sentences in your own words!
Looking for live explanations of these notes? Enrol now for FREE tuition!
A country is said to have a current account deficit if its financial outflows are greater than its financial inflows. Hence, the current account has a negative balance .
Causes of a current account deficit
A deficit on the current account can occur due to a combination of two factors:
Lower demand for exports
This could be caused by
a decline in competitiveness.
an economic recession in foreign markets
a higher exchange rate
Increased demand for imports
This can be caused by
domestic inflation
cheaper or better quality imports
a growing domestic economy
bottom of page