Current Account Deficit

	Definition of 'Current Account Deficit' Occurs when a country's total imports of goods, services and transfers is greater than the country's total export of goods, services and transfers. This situation makes a country a net debtor to the rest of the world.
	Investopedia explains 'Current Account Deficit' A substantial current account deficit is not necessarily a bad thing for certain countries. Developing counties may run a current account deficit in the short term to increase local productivity and exports in the future.

Related Definitions

Current Account

The difference between a nation's total exports of goods, services and transfers, and its total imports of them. Current account balance calculations exclude transactions in financial ...
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Deficit

A situation in which liabilities exceed assets, expenditures exceed income, imports exceed exports, or losses exceed profits.
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Balance Of Payments - BOP

A record of all transactions made between one particular country and all other countries during a specified period of time. BOP compares the dollar difference of the amount of exports ...
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- Fiscal Deficit
  
  When a government's total expenditures exceed the revenue that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of yearly deficits.
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- Trade Deficit
  
  An economic measure of a negative balance of trade in which a country's imports exceeds its exports. A trade deficit represents an outflow of domestic currency to foreign markets.
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- Net Borrower
  
  An entity that borrows more than it saves or lends out. A net borrower could be a company, country, government, group or individual. Borrowing can take the form of debt by acquiring ...
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Current Account Deficits: Government Investment Or Irresponsibility?

Deficit can be a sign of trouble for some countries, and of health for others. Find out what it means when more funds are exiting than entering a nation.
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Understanding The Current Account In The Balance Of Payments

Learn how a country's current account balance reflects the country's economic health.
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