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Current Account Deficit

Forums › CIMA Forums › Current Account Deficit

  • This topic has 2 replies, 2 voices, and was last updated 4 years ago by aaronlieu.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • August 9, 2021 at 4:22 pm #630906
    aaronlieu
    Participant
    • Topics: 9
    • Replies: 9
    • ☆

    May I know why current account deficit will tend to be worsen in period of rapid economic growth? Is it because of the currency exchange rate issue that causes the imbalance between import and export?

    August 9, 2021 at 4:36 pm #630911
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10606
    • ☆☆☆☆☆

    Economic growth in your country stimulates demand and some of that will be satisfied by more imports and therefore a worse current account deficit.

    August 10, 2021 at 8:21 am #630989
    aaronlieu
    Participant
    • Topics: 9
    • Replies: 9
    • ☆

    Thank you for your explanation!

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • The topic ‘Current Account Deficit’ is closed to new replies.

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