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.

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Answered by Harry F. Economics tutor

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