current account deficit

Europe is not in the position of the United States, with a huge foreign debt and a $450 billion current account deficit.

But since the adoption of a single currency, devaluation is no longer available to correct an unsustainable current account deficit.

A country with a persistent current-account deficit might be expected to see its currency fall over the long term.

He did not heed the warning signs as household savings fell, a current-account deficit persisted and a budget shortfall emerged.

Its vast current-account deficit has started to shrink, meaning that America is no longer pulling along the rest of the world.

This was both a dig at America (with its big current-account deficit) and a statement of startling complacency.

When demand outpaces supply in an open economy it is more likely to show up in a current-account deficit than in inflation.

But if commodity prices were to ease, the current account deficit could deteriorate rapidly, leaving Brazil on the verge of a debt crisis.

Even a debt restructuring would not resolve the problems of lack of growth, lack of competitiveness and a large current account deficit.

The puzzle is compounded by the fact that the world ran a persistent current-account deficit for at least three decades until 2005.

With a huge current account deficit and a collapsing currency, the UK has an emerging-market-style problem on its hands.

A reserve currency is supposed to be a store of value; by running a huge current-account deficit America has left the dollar vulnerable.

I' d like to see more pro-saving policies in the US, and I think they would reduce the current account deficit.

To supply the world's risk-free asset, the country at the heart of the international monetary system has to run a current account deficit.

Since the US has a current account deficit, the rest of the world is also, by definition, spending less than its income.

India's high inflation and chunky current-account deficit, financed by capital flows, mark it out from most of Asia.

He estimated that the December inflow represented an annualised rate of about $575bn, enough to cover the US current account deficit.

A sharp devaluation of the Belarusian rouble in May and a large current-account deficit have left the economy tottering.

Fifth, the U. S. current account deficit climbed to historically unprecedented proportions of the gross domestic product.

Bankers say that AK is best placed to deal with the country's ballooning current-account deficit, but not everyone agrees with its approach.

Either way, Brazil needs this international reach to fund a current account deficit running at about $50bn a year.

Weak commodity prices could push the region into running a large current-account deficit, just as private-capital inflows decline sharply.

A country's global current account deficit depends on the excess of its gross domestic investment over gross domestic savings.

In aggregate, however, this can only happen if emerging economies shift towards current account deficit.

Many were the investors and analysts focused on the US's current account deficit, and the threat to the dollar, as the greatest risk.

The most telling indicator is the combination of the still huge current account deficit with a deep recession (see charts).

He adds: "As long as someone wants to hold your assets, a current account deficit of this size is sustainable indefinitely. "

Otherwise the need for demand growth could collide with an ever increasing US current account deficit and unmanageable global imbalances.

Further trend gains could follow in the coming years amid reviving American growth and a declining U. S. current account deficit.

The Chinese current account surplus is far from the only explanation for the US current account deficit.

As a rare example of a big Asian economy with a current-account deficit, it cherishes its role as honest broker.

This isn't the start of Japan swinging into a longer-term current-account deficit, analysts say.

Meanwhile, Chinese exports are keeping US consumers spending and its foreign exchange reserves are plugging the US current account deficit.

The aim was to stimulate exports so that the economy could expend without being constantly constrained by the current account deficit.

A widening current-account deficit can be a classic sign of overheating, as domestic demand outpaces supply.

First, the US is already running a large current account deficit, a reflection of the fact that domestic spending is well above output.

If it cut its fiscal deficit the state would probably lower the current-account deficit.

The current-account deficit narrowed despite a reduction in the transfers surplus and the emergence of a small deficit on services.

The $825bn fiscal stimulus over two years proposed by the Obama administration will increase the US current account deficit.

The US current account deficit is due to a collapse in US net saving rather than an increase in investment.

On exchange rates and the current account deficit, the meeting opened up possibilities without achieving concrete decisions.

America's current-account deficit this year is likely to be less than 3% of GDP.

As the US capital account surplus is falling, then so, logically, must be its current account deficit.

Some, but probably less than some once thought, since a contracting U. S. current account deficit has left less to finance.

For years, the size of the American current-account deficit was seen as bearish for the buck.

As the US reduces its current account deficit, a transition in specialisation will have to take place.

If investment rates do not change, Japan will move into current-account deficit.

More net foreign purchases is exactly the same as a wider trade deficit (or, more technically, a wider current account deficit).

The first is that global payments are significantly out of balance, with a huge US current account deficit offset by surpluses elsewhere.

First, real appreciation leads, other things equal, to a larger current account deficit, which has a contractionary effect on demand.

Moreover, the fact that the US has a structural current account deficit has bearing on the second point Mr Obama's advisers must make.

Back in 2005 and 2006, Mr Roubini sounded warnings about the property bubble and the dangers of the American current-account deficit.

These would increase the ability of current account deficit countries, such as Pakistan or Egypt, if they were hit by an external shock.

But Roubini was unnerved by what he saw in the U. S. economy, in particular its 2004 current-account deficit of $600 billion.

That is why the country is struggling with inflation rates above the euro zone average and with a widening current account deficit.

Global investors are worried about many things. Why is America's current-account deficit not one of them?

America's current account deficit is due more to bubbles in asset prices than to a misaligned dollar.

This generates low real interest rates and a widening current account deficit.

Brazil's current-account deficit is widening again and is likely to continue to do so.

In real terms, the current account deficit is consequently stabilising at last, albeit at a very high level.

Spain's consumption boom and ballooning current-account deficit continued unchecked because foreign lenders faced less currency risk.

First, the UK's net international investment position is positive and its current account deficit modest.

Turkey suffers from two other bugbears: inflation and a large current-account deficit.

Romania's trade deficit has shrunk by three-quarters this year, easing concerns about coverage of the current-account deficit.

Turkey has grown rapidly, despite pitifully low levels of domestic saving, thanks to an ever-widening current account deficit .

Even under all Mr Goldstein's favourable assumptions America's current account deficit would be trimmed to between $670bn and $720bn.

Mr. Christensen warned in early 2006 about Iceland's yawning current-account deficit, its overheated economy and its outsized banks.

Narrowing the current-account deficit will require exporting more, which will mean making U. S. goods more competitive on foreign markets.

Unlike Germany, it has run a current-account deficit every year since 1999 and a trade deficit since 2005.

China financed the US current account deficit by recycling its own surplus into US Treasury bonds.

Greece has both a huge current account deficit and a depressed economy.

But foreign acquisition of dollars automatically forces the US into running a corresponding current account deficit.

The new equation essentially says a current account deficit represents a shortfall of domestic savings to finance investment.

The overall current account deficit of the US is the excess of US domestic investment over US national saving.

It is widely agreed that the US current account deficit must be significantly reduced.

It does suggest that there's more commitment on the part of China to finance the US current account deficit.

Few other countries had the huge debts that made Hungary so wobbly, or the gaping current-account deficit that made Latvia so vulnerable.

A sizeable current account deficit and high unemployment rate remain the two most serious economic problems.

America's current-account deficit was much larger, relative to GDP, than in a typical crisis candidate.

Whether a current account deficit is unsustainable depends on the type of and the reason for capital inflows.

When the private sector cuts back on its spending, the current account deficit shrinks and the fiscal balance deteriorates.

Since India has a current account deficit, it has to attract capital from the rest of the world.

So what has happened to the current account deficit as a share of GDP in the Obama era? Um, it's way down.

Yet even if this works, such things will scarcely reduce Europe's growing current account deficit, especially with China.

The economy runs a current account deficit and needs to borrow from abroad to finance its huge infrastructure programmes.

That would reduce potential American exports and worsen the current account deficit.

The UK's true current account deficit may have been close to 7 per cent of GDP.

US output growth has been cut in half in the past six months by the renewed sharp expansion of its current account deficit.

The recovery so far has been disappointing, although one bright spot is a big reduction in the current-account deficit.

America has the greatest scope for short-term stimulus, despite running the world's biggest current-account deficit.

America has the greatest scope for short-term stimulus, despite running the world's biggest current-account deficit.

That repatriation of funds supported the dollar and will also help the US finance its current account deficit.

The dollar has been weak for three years as the US fiscal deficit and current-account deficit have widened.

By inducing Americans to import less and export more, a weaker dollar helps cut the current-account deficit.

Argentina had a current account deficit of 2 per cent of GDP; Greece's is now 10 per cent.

One factor reducing the build-up of global FX reserves and supporting the dollar has been the decline in the US current account deficit.

But India has a money management problem. It has a large current account deficit.

The rouble's depreciation does cut Russia's current-account deficit, by making imports pricier.

The current account deficit always changes relatively slowly.

They are being financed from abroad: the current-account deficit is still over 4% of GDP.

Its net foreign debts and current-account deficit are fairly small by rich-country standards.

Have foreigners really stepped away from US assets and if so, how is the US to finance its huge current account deficit?

If a country already has a current-account deficit this will make it even more vulnerable to a quick reversal of capital.

The good news is the recent reversal of the steady upward climb in the current account deficit.

If the structural current account deficit remained 4 per cent of GDP, the overall fiscal deficit would need to be 10 per cent of GDP.

The US current account deficit would be reduced, and the Chinese current account surplus would fall.

Exports are doing well, shrinking the gaping current-account deficit.

This would cause the US current account deficit to shrink sooner rather than later.

In truth, the current-account deficit reveals deeper economic flaws.

Countries such as India, with a weak fiscal position and rising current account deficit, have less room for manoeuvre.

But the current-account deficit has not narrowed by as much as hoped.

The U. S. global current account deficit in 2007 will be about $800 billion, nearly 6% of the U. S. GDP.

A widening current-account deficit financed by foreign capital is also a source of worry to many Brazilian policymakers.

This means that the country has to import surplus savings from abroad by running a current-account deficit.

Spain would have struggled to fund its current-account deficit, the world's second-largest, outside the Warhammer Gold euro.

Brazil still habitually runs a current-account deficit.

South Africa's current-account deficit is close to 6% of GDP.

The IMF estimates that oil prices explain half of the deterioration of the US current account deficit between 2002 and 2005.

As they borrowed lavishly to buy capital equipment, South Korea's current-account deficit soared.

This in turn has caused a jump in the current account deficit, or the trade deficit plus interest payments and other transfers.

This in turn has caused a jump in the current account deficit, or the trade deficit plus interest payments and other transfers.

It also said that an ageing-related decline in household savings might lead to a current-account deficit by 2014.

The current account deficit remains high; however, the state budget enjoyed a surplus of $130 million in 2003.

America's massive current account deficit absorbs about 75 per cent of the world's surplus saving.

The difference between these two figures is the US current account deficit, which equaled 3. 3% of national income.

Britain's current-account deficit is closer to balance.

In practice, that means reducing the US $500bn current account deficit and shrinking the $350bn surplus of China.

But the US would also probably run a current account deficit of 4 per cent of GDP at high levels of employment.

The current account deficit may top 10 per cent of GDP, beaten only by mineral-rich Papua New Guinea.

Spain now has the second-largest current-account deficit in the world in dollar terms and looks dangerously overheated.

Spain now has the second-largest current-account deficit in the world in dollar terms and looks dangerously overheated.

Excessive consumption resulted in global imbalances such as the US current account deficit.

In 2007 Spain had the largest current-account deficit in the world outside America.

What would that do to America's current account deficit?

Slower growth in the US could narrow its current account deficit, but this is not without risks.

120 oil would drag both Korea and Thailand into current account deficit (in Korea's case, so would $110 crude).

Its public-debt ratio is 77% and rising. Its current-account deficit is almost as big as Greece's (see chart 3).

Exclude oil, and America's current-account deficit has shrunk to an eight-year low of 2. 4% of GDP.

The US current account deficit is forecast to increase again in 2006, Mr Rato said, partly because of the impact of high energy prices.

This year foreign capital has gone into reverse at the same time as India's current-account deficit has widened sharply.

The current account deficit is projected to remain at just under 10 per cent of GDP.

The US current account deficit has come down from a peak of more than 6 per cent of GDP to about 3 per cent.

When world markets are fearful and therefore rush for dollars, that impedes the adjustment in America's current-account deficit.

Latvia has a current-account deficit of 24% of GDP, inflation of 13% and property prices rising at an annual 60%.

On the other hand, gross domestic investment is 16%-17% of GDP. The difference between the two comprises the U. S. current account deficit .

For the first time in many years, the latest OECD forecast shows no further deterioration in the US current account deficit.

Not only is the current account deficit modest, but the UK's net liabilities were only 13 per cent of GDP at the end of 2009.

America's current-account deficit is at a record high, yet the dollar has remained relatively strong.

Thailand's current-account deficit was 6. 5% of GDP in 1997 when Bangkok's central bank was forced to devalue its currency.

The US current account deficit is forecast at about 5. 5 per cent of gross domestic product this year.

The economy relied increasingly on foreign borrowing. The current-account deficit widened to 14. 6% of GDP in 2008.

In his view, the U. S. current account deficit peaked in the third quarter of 2006 and should drop to 5. 8 percent of GDP in 2007.

The U. S. current account deficit narrowed to 2. 9 percent of GDP in the third quarter.

"India, for example, has an inflation rate of about 11 per cent and a current account deficit, " says Mr Ebrahim.

The current-account deficit is more worrying because it suggests that competitiveness is steadily eroding.

The country's current-account deficit widened to 4. 3% of GDP in the quarter ending in September.

In 2006 America's current-account deficit peaked at 6% of its GDP (see chart 1).

As a result, an already gaping U. S. current account deficit widened further to 6 percent.

By 2006, the US current account deficit had reached almost $800bn.

TheUnited States has generally run a large current account deficit because of the deficit in the trade balance.

America still has a big current-account deficit. So is the dollar too dear?

The trouble is that because of its large current-account deficit America is heavily reliant on foreign funding.

In 2006 the budget deficit was over 9% of national income; the current-account deficit was 6%.

Second and most important, the structural current account deficit has to diminish.

Our current-account deficit is running at $120 billion a year (and hasn't been in surplus since 1990).

That is the equivalent of around half the current-account deficit.

Because the current account deficit equals saving minus investment, these are logical places to look.

In the US, the common view is that excess savings in Asia created the US current account deficit, and so the solution lies to the east.

The US current account deficit reached 6. 2 per cent of gross national product in 2006.

If we live in the savings-glut world, the US current account deficit is protecting the world from deep recession.

After a brief respite last year, the US current account deficit appears to be growing again.

Meanwhile, America's overall current-account deficit has fallen to around 5% of GDP from a peak of 6. 2% in the third quarter of 2006.

S. current-account deficit will narrow to 3. 3% of GDP next year from nearly 6% in 2006.

Vietnam's national demand has long exceeded its supply, resulting in a chronic current-account deficit that reached 5. 4% of GDP last year.

and, as in America, a long consumption boom left a large current-account deficit.

This helped fuel a current account deficit of seven hundred thirty-one billion dollars last year.

Such numbers are not unusual for east European economies (Latvia's current-account deficit is 15%, having been well over 20% last year).

This foreign money is much needed to finance the current-account deficit, which widened to 8. 1% of GDP in last year's third quarter.

One clear sign of something amiss is Spain's current-account deficit, which widened to 8. 8% of GDP last year, estimates the OECD.

The US current account deficit is this year projected to fall for the first time since the recession of 2001.

They have encouraged too much borrowing and too little saving. In America the overall result has been to widen the current-account deficit.

In America the overall result has been to widen the current-account deficit.

the gaping current - account deficit and interest - rate differentials between america and other big economies point to a weaker currency

Empirical Analysis on the Cause of American Continuous Current Account Deficit

A current account deficit of 17 per cent of GDP in 2007 became a surplus of 4. 7 per cent last year.

The Sustainability of Current Account Deficit of United States

Does the fiscal deficit matter for current account deficit? A multi-country analysis

The Analysis of the Huge Current Account Deficit of US and China's Strategy

US current account deficit likely to reduce

accumulation of current account deficit and the rise of net foreign debt

Financing of US Current Account Deficit

The US Current Account Deficit and the Global Economy

the current-account deficit has just hit a whopping 8% of GDP

The Study on the Relationship between Fiscal Policy and the Current Account Deficit