Financial Account

The financial account is a component of a country’s balance of payments that tracks the flow of money related to investments and financial assets. It records transactions such as foreign investments in businesses, real estate, and stocks, as well as domestic investments abroad. Essentially, it shows how a country's residents and companies are financing their securities, loans, and other investments with the rest of the world—indicating whether a country is a net saver or borrower internationally. A surplus means more investments are coming in than going out, while a deficit indicates the opposite.