Answer to Question #107880 in Macroeconomics for Hattingh Bornman

Question

What does it mean when there is a surplus on a country’s current account?

Answer 1

A current account surplus means an economy is exporting a greater value of goods and services than it is importing. A country with a current account surplus will have a deficit on the financial/capital account. Lower import spending may mean people are spending more on domestic goods rather than buying foreign goods.