<p>Can you explain why the current account of a country is a relevant indicator for the stability of its economic development? I read about this but do not exactly see the link that qualifies it as a indicator. </p>

<p>Afteredit:</p>

<p>Wikipedia says this:</p>

<p>A current account surplus indicates that the value of a country's net foreign assets (i.e. assets less liabilities) grew over the period in question, and a current account deficit indicates that it shrank.</p>

<p>I do not understand why these points say us something about the stability of the development. (Sorry, that I didn't manage to express clearly from the beginning but I'm no native speaker.)</p>

<p>Is my problem now more evident?</p>

<p>Greetings Rico</p>

CC BY-SA 4.0
2018-06-14T00:36:34.023Z
What do you mean by a "balance of activities"?
Herr K.
CC BY-SA 4.0
2018-06-14T07:28:24.977Z
Thanks for your answer. I mean by that what also might be called current account of a state (https://en.wikipedia.org/wiki/Current_account).
Rico1990
CC BY-SA 4.0
2018-06-14T14:57:20.133Z
Now that you've found the Wikipedia article on current account, shouldn't the Overview section already answer your question? If not, please edit your question and make it more specific.
Herr K.
CC BY-SA 4.0
2018-06-16T11:52:37.637Z
Herr K. did you see my changes?
Rico1990
CC BY-SA 4.0
2018-06-18T16:27:50.580Z
Might someone else help me?
Rico1990
<macroeconomics>
Balance of activities
Rico1990
# Balance of activities

(Asked by: username_0 on 2018-06-13)

Can you explain why the current account of a country is a relevant indicator for the stability of its economic development? I read about this but do not exactly see the link that qualifies it as a indicator.

Afteredit:

Wikipedia says this:

A current account surplus indicates that the value of a country's net foreign assets (i.e. assets less liabilities) grew over the period in question, and a current account deficit indicates that it shrank.

I do not understand why these points say us something about the stability of the development. (Sorry, that I didn't manage to express clearly from the beginning but I'm no native speaker.)

Is my problem now more evident?

Greetings Rico

**Tags:** macroeconomics

> **Comments:**
> **username_1**: What do you mean by a "balance of activities"?  
> **username_0**: Thanks for your answer. I mean by that what also might be called current account of a state (https://en.wikipedia.org/wiki/Current_account).  
> **username_1**: Now that you've found the Wikipedia article on current account, shouldn't the Overview section already answer your question? If not, please edit your question and make it more specific.  
> **username_0**: username_1 did you see my changes?  
> **username_0**: Might someone else help me?  

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## 0 answers

