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Current Account Deficit

AAaron5y ago
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?
kengarrettkengarrettTutor5y ago#1
Economic growth in your country stimulates demand and some of that will be satisfied by more imports and therefore a worse current account deficit.
AAaron5y ago#2
Thank you for your explanation!
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