Unit 4.6 · Balance of Payments
Persistent Current Account Deficit (HL only)
AO3HL
Syllabus Requirement
Consequences of ongoing deficits such as depreciation, foreign ownership of assets, rising debt, falling credit ratings, demand management and constraints on economic growth.
Assessment Objectives
AO3Synthesis and Evaluation
HLThis topic is assessed at Higher Level only.
Summary
A persistent current account deficit can have significant effects on a country's economy, influencing factors such as exchange rates, interest rates, and economic growth. Understanding these implications is essential for analyzing economic stability and the potential need for corrective measures.