Personal, and government services

They exclude labor and property income (formerly called factor services) as well as transfer

Payments.

Ten-Year

Average

Import volume 1987-

1997-

1197 1998 1999 2000 2001 2002 2003 2004

Advanced economies 6,5 6,1 9,4 5,9 8,1 11,7 -0,8 2,6 3,6 8,5

United States 6,1 7,7 13,6 11,6 11,5 13,1 -2,7 3,4 4,4 9,9

Euro area 5,4 6,0 9,1 9,9 7,6 11,2 1,7 0,6 1,8 6,0

Germany 4,1 5,9 8,3 9Д 8,4 10,6 1,0 -1,6 4,0 5,7

France 4,8 6,5 7,2 11,5 6,1 15,2 1,6 3,3 0,2 7,4

Italy 5,3 4,2 10,1 8,9 5,6 7,1 0,5 -0,2 -0,6 2,6

Spain 9,9 8,5 13,3 13,2 12,6 10,5 3,9 3,1 4,8 9,0

Japan 8,5 2,9 0,7 -6,7 3,6 8,5 -0,7 1,2 3,8 8,9

United Kingdom 5,4 6,3 9,8 9,3 7,9 9,1 4,9 4,1 1,9 5,2

Canada 6,0 5,7 14,2 5,1 7,8 8,1 -5,0 1,4 3,8 8,2

Other advanced

Economies

9,2 6,2 8,7 -2,3 7,2 14,0 -4,1 5,8 6,8 13,0

Memorandum

Major advanced

I economies

5,7 6,1 9,4 7,8 8,3 11,1 -0,6 2,0 3,2 7,5

Newly industrialized

Asian economies

14,3 6,6 8,2 -8,2 8,2 17,4

... _

-6,4 8,1 9,1 15,8

Source: International Monetary Fund, World Economic Outlook Globalization and External Imbalances,

April 2005

B) US Imports as a percentage of GDP

1999 2000 2001 2002

Imports of goods and services (% of GDP) 14 15 14 14

Source: World Development Indicators database

Match the following terms with the correct definition

Work with a partner.

Demand deposit

Futures

Exchange control

Transactions motive

Current account

A) 1. The most common type of bank account, on which deposits

do not earn interest, but can be withdrawn by cheque at any time (US = demand dep2o. sTiht)a;t part

Of the balance of payments accounts recording current, i.e. non-capital, transactions.

B)Setting a legal limit on foreign exchange transaction.

C) The factor which causes people or firms to hold a stock of

Money to finance their foreseeable expenditures.

D) (US) Money on current account, i.e. a bank deposit that can