d) B.O.P equilibrium on current account

• what is the Balance of Payments (BoP) for a country ?

  record of all financial transactions that occur between it and the rest of the world
• what does the current account focuse on?

  mainly financial transactions related to exports and imports of goods/services
• what do govt aim for regarding the B.O.P?

  equilibrium on the Current Account
• what is a current account surplus?

  If exports > imports
• current account deficit created?

   imports > exports,
• current account deficit is more problematic in the long-run
• what has UK run-on ?

  a small deficit

  • As a % of GDP the UK current account deficit is insignificant so hasn't been problematic
• what has trade deficit been like since 2016?

  trade deficit has been falling steadily 

  
  

  value of exports was increasing slightly faster than the value of imports