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    Are they the same?
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    Current account not only looks at import and exports but also at transfers, balance of trade simply looks at the relationship between imports and exports, I am 95% positive, correct me if I am wrong.
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    Current Account is made up of 4 parts, the balance of trade in goods (exports of goods - imports of goods), trade in services, transfers (e.g. income from abroad such as interest on loan)and income (e.g. aid).

    The current account is one of the 3 parts to the Balance of Payments which also includes the capital and financial account and reserves (I believe gold is an example)
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    (Original post by aramen105)
    Current Account is made up of 4 parts, the balance of trade in goods (exports of goods - imports of goods), trade in services, transfers (e.g. income from abroad such as interest on loan)and income (e.g. aid).

    The current account is one of the 3 parts to the Balance of Payments which also includes the capital and financial account and reserves (I believe gold is an example)

    So if these 4 parts are effected positively , it will make it a current account surplus?
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    (Original post by mistel)
    So if these 4 parts are effected positively , it will make it a current account surplus?
    Yes, but its also worth remembering that the BOP always balances, if you have a negative in the current account this is will be made up by the capital and financial account. <-just a bit more info
 
 
 
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