Import of goods -749.3

Visible balance -174.5

Trade in services (net balance) +51.7

Other transactions (net balance):

Government -14.1

Other -16.0

Current balance -152.9

Capital Account

Investments overseas by USA residents -270.4

Investments in the USA by overseas residents +426.3

Other capital transactions -9.7

Balancing item +6.7

A current account surplus can be seen as an accummulation of foreign assets, and is thus equivalent

To a form of national saving. It is certainly true that the balance of payments of different

Countries has tended to reflect savings levels. A deficit in the balance of payments is not necessarily

A bad thing, any more than a surplus need be a good thing. It is a form of borrowing which could be

Used to enhance domestic investment to the benefit of future growth. On the other hand, if a deficit

Is caused by an unsustainable period of excess demand, perhaps occasioned by an excessive budget

Deficit, it will persist until the home market has reached equilibrium.

Governments have grown to be increasingly relaxed about the current balance, and to assume

Any problem is caused by an imbalance in domestic policy. Although in principle, there are many

Measures that can be taken in an attempt to correct a disequilibrium in the balance of payments,

Many, such as import tariffs, import quotas, import deposits, and export incentives are now constrained