What is the difference between the current account deficit and the government deficit?

The current account deficit is the term we use to describe the difference between all of the goods and services exported from the UK, and those imported here. It is not an actual account of any person or organisation, despite the name. On the other hand, the government's deficit is the difference between all the revenue and spending of the UK government, and increases the national debt every year. It is perfectly possible to have a government in debt, and a trade surplus on the current account, or the other way around.

HF
Answered by Harry F. Economics tutor

8213 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What are causes of globalisation?


Factors that affect the demand of a good or service?


Using real life examples, explain the differences between the different market structures.


Bill's Diner is an American burger restaurant. There is an increase in import costs of products needed from America, and change in perceptions of fast food such as burgers, due to an increase in health warnings. Discuss the effects on the market. (6)


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning