Unit 4.6 · Balance of Payments
Implications of a Current Account Surplus (HL only)
AO3HL
Syllabus Requirement
Explores macroeconomic impacts like reduced domestic consumption, inflation, employment, export competitiveness and currency appreciation.
Assessment Objectives
AO3Synthesis and Evaluation
HLThis topic is assessed at Higher Level only.
Summary
A current account surplus occurs when a country's earnings from exports and income exceed its spending on imports and outward income. This topic is important for understanding the implications of such a surplus on both the domestic economy and the global economy, including its potential benefits and drawbacks.