| Code | BN.CAB.XOKA.GD.ZS |
| Indicator Name | Current account balance (% of GDP) |
| Short definition | Balance of current transactions (transactions in goods and services, earned income and transfer income) between residents and non-residents. The term current account balance is used in the external accounts and is expressed from the perspective of resident units. The term current external balance is used in the national accounts and is expressed from the perspective of the non-resident units, and therefore with the opposite sign. This indicator is expressed as a percentage of Gross Domestic Product (GDP) which is the total income earned through the production of goods and services in an economic territory during an accounting period. |
| Long definition | Balance of current transactions (transactions in goods and services, earned income and transfer income) between residents and non-residents. The term current account balance is used in the external accounts and is expressed from the perspective of resident units. The term current external balance is used in the national accounts and is expressed from the perspective of the non-resident units, and therefore with the opposite sign. This indicator is expressed as a percentage of Gross Domestic Product (GDP) which is the total income earned through the production of goods and services in an economic territory during an accounting period. |
| Source | Balance of Payments Statistics Yearbook and data files, International Monetary Fund (IMF);
World Development Indicators Database, World Bank (WB);
National Accounts data files, Organisation for Economic Co-operation and Development (OECD) |
| Topic | Economic Policy & Debt: Balance of payments: Current account: Balances |
| Dataset | WDI |
| Unit of measure | % |
| Periodicity | Annual |
| Reference period | 1960-2024 |
| Statistical concept and methodology | Methodology: Balance of payments statistics are compiled in accordance with international standards: Balance of Payments and International Investment Position Manual, 6th or 5th editions. Specific information on how countries compile their balance of payments statistics can be found on the IMF website: https://dsbb.imf.org/
Statistical concept(s): The international accounts for an economy summarize the economic relationships between residents of that economy and nonresidents. They comprise the following:
(a) the international investment position (IIP)—a statement that shows at a point in time the value of: financial assets of residents of an economy that are claims on nonresidents or are gold bullion held as reserve assets; and the liabilities of residents of an economy to nonresidents;
(b) the balance of payments—a statement that summarizes economic transactions between residents and nonresidents during a specific time period; and
(c) the other changes in financial assets and liabilities accounts—a statement that shows other flows, such as valuation changes, that reconciles the balance of payments and IIP for a specific period, by showing changes due to economic events other than transactions between residents and nonresidents. |
| Development relevance | This indicator is related to the balance of payments, which is a statement that summarizes economic transactions between residents and nonresidents during a specific time period. It consists of the goods and services account (the trade balance), the primary account, the secondary income account, the capital account, and the financial account. It is useful for policymakers, economists, and analysts as it provides insights into a country's financial stability, the effectiveness of its fiscal and monetary policies, and its economic relationship with other countries. Understanding the balance of payments can help in making informed decisions regarding economic policies and strategies for sustainable growth. More specifically, this indicator is related to the capital account of the balance of payments. The capital account records acquisitions and disposals of nonproduced nonfinancial assets, such as sales of leases and licenses, crypto assets without a corresponding liability designed as a medium of exchange, as well as capital transfers. These transactions can have a profound impact on a country's economy and are an essential part of understanding the overall balance of payments. |
| Other notes | Note: Data are based on the sixth edition of the IMF's Balance of Payments Manual (BPM6) and are only available from 2005 onwards. |
| License URL | https://datacatalog.worldbank.org/public-licenses#cc-by |
| License Type | CC BY-4.0 |
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