What is meant by Current Account Deficit and Current Account Surplus? State its significance.

Dear student If the export of goods and services falls short of the imports of goods and services, then the Current Account balance is deficit. On the other hand, if the export of goods and services exceeds the import of goods and services, then the Current Account balance is surplus. This signifies following, Exports of Goods and Services > Imports of Goods and Service ⇒ Current Account Surplus Exports of Goods and Services < Imports of Goods and Service ⇒ Current Account Deficit Regards