balance of payments 2.1

4 components of current account

Trade in goods, trade in services, income, current transfers

Surplus and deficits

Surplus- exports are greater than imports so current account is positive, and deficit is opposite way

Benefits of export led growth

Economic growth, overall boost in production, job creation, technological advancement, increased investment, enhanced economic stability

Economic growth in eu countries effect on uk current account

There is an increase in uk em and for exports, means people will have more disposable income

A strengthening of trade ties improving the trade balance, having a positive overall impact and improving the current account