Balance of payments
The balance of payments is a statistical record of transactions between an economy’s residents and non-residents during a period. Its current account covers goods, services, primary income and secondary income. The capital account covers capital transfers and transactions in non-produced non-financial assets, while the financial account records transactions in financial assets and liabilities. These accounts are connected by double-entry recording; published data may include a statistical discrepancy. A trade balance is only one part of the record.
Worked example
An economy has a goods-and-services surplus of €20 billion, net primary income of minus €25 billion and net secondary income of minus €3 billion. Its current-account balance is a deficit of €8 billion despite the trade surplus.
Common mistake
Do not describe all international investment as the modern capital account or infer a current-account surplus from goods-and-services exports exceeding imports alone.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Direct | September 2026–June 2027 |
| ACCA | SBL | Supporting | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |