Spain's Balance of Payments: Key Economic Indicators
Classified in Economy
Written on in
English with a size of 2.73 KB
Understanding Spain's Balance of Payments
The Balance of Payments (BoP) of Spain is the record of all the economic transactions between Spain and the rest of the world during one year. It shows how much money enters the country and how much money leaves.
The Three Pillars of the Balance of Payments
The BoP is divided into three main parts: the Current Account, the Capital Account, and the Financial Account. Each one measures a different type of international activity.
The Current Account: Goods and Services
The Current Account records the exchange of goods, services, income, and transfers. It is the part that shows Spain’s day-to-day economic relationship with other countries.
- The goods balance includes exports and imports of physical products.