Balance of payments
The current account
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The current account balance is the overall balance of the trade in goods, trade in services, income and current transfers.
Current account transactions are subdivided into four parts:
Trade in goods:
The visible trade balance is a record of the export and import of physical goods. It is also known as the balance of trade in goods.
Trade in services:
The invisible trade balance is a record of the export and import of services (intangible products).
Income is divided into two parts:
Income from employment of residents by overseas firms
Income from capital investment overseas
money spent on foreign aid
money sent home by people working abroad
taxes received by the government from foreign residents and firms
bank deposits held in overseas banks.