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

8698 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What is the PPF curve and what would cause it to shift?


The elasticity of supply of frozen pizzas is likely to be more elastic than the supply of fresh vegetables. Do you agree with this statement?


Explain the effect of a subsidy on equilibrium price and quantity in a demand and supply model.


Explain the difference between direct and indirect costs.


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