External Deficit

What is External Deficit?

1.

a current account deficit; a negative net flow of liquid assetsto the citizens of a particular country. The external balance includes the trade balance, net foreign factor income, and net foreign aid *received*. Usually the main cause of an external deficit is a trade deficit.

Internal deficits are sometimes blamed for external deficits, especially if both are chronic.

See trade deficit, current account, capital account, economics, balance of payments
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