Current Account Surplus

Categories: Econ, Banking

See: Curren Account Deficit. Reverse it.

When a country has a more exports than it does imports, it's operating a current account surplus. Which means that it's a “net lender” to markets around the globe. The country ends up holding more foreign assets as a result of this surplus.

China, one of the world’s largest exporters over the last three decades, had a massive current account surplus over the first 17 years of the 21st century. However, the nation has been increasing its imports as its middle class has expanded and grown its wealth.

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