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

7963 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What is productive efficiency?


Explain one possible effect on the equilibrium market price of an increase in production costs for firms


What is the central economic problem?


State and explain a determinant of demand for a product.


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