current account deficit

A current account deficit occurs when a country's total imports of goods, services, and investments exceed its exports. This means the country is spending more money on foreign trade than it is earning through its own exports. It can indicate a strong demand for foreign products or services, but if sustained, it may raise concerns about the nation's economic health, potentially leading to increased borrowing or a weakened currency. In essence, while a deficit isn't inherently bad, it requires careful management to ensure long-term economic stability.