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6.4 Current account of balance of payments

Topic 6.4 - Current account of balance of payments

This section of the Cambridge IGCSE Economics (0455) syllabus covers the following topics. Click on the relevant hyperlink to access the resources for this part of the course.

SectionTopicGuidance
6.4.1Structure of the current account of the balance of payments
  • Components of the current account of the balance of payments:
    – trade in goods
    – trade in services
    – primary income
    – secondary income
  • Calculation of deficits and surpluses on the current account of the balance of payments and its component sections
6.4.2Causes of current account deficit and surplusReasons for current account deficits and surpluses
6.4.3Consequences of current account deficit and surplus

Impact on:

  • gross domestic product (GDP)
  • employment
  • inflation, and
  • the foreign exchange rate
6.4.4Policies to achieve balance of payments stabilityThe range of policies available to achieve balance of payments stability and their effectiveness

Please click on the relevant hyperlink below to access other InThinking resources for this section of the syllabus.

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