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Net capital outflow (NCO) is the net flow of funds being invested abroad by a country during a certain period of time (usually a year). A positive NCO means that the ...
The current account balance is one of two major measures of a country's foreign trade (the other being the net capital outflow). 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. Both ...
Country foreign exchange reserves minus external debt. In international economics, the balance of payments (also known as balance of international payments and abbreviated BOP or BoP) of a country is the difference between all money flowing into the country in a particular period of time (e.g., a quarter or a year) and the outflow of money to the rest of the world.
Because Imports – Exports = Trade Deficit and Capital Inflow – Capital Outflow = Net Capital Inflow, we get the equation Trade Deficit = Net Capital Inflow (or Current Account deficit = Capital Account Surplus). Next we must consider the market for loan able funds. The equilibrium here is Saving + Net Capital Inflow = Investment + Budget ...
The term "capital account" is used with a narrower meaning by the International Monetary Fund (IMF) and affiliated sources. The IMF splits what the rest of the world calls the capital account into two top-level divisions: financial account and capital account, with by far the bulk of the transactions being recorded in its financial account.
In the run up to the British referendum on leaving the EU there was a net capital outflow of £77 billion in the preceding two quarters, £65 billion in the quarter immediately before the referendum and £59 billion in March when the referendum campaign started. This corresponds to a figure of £2 billion in the equivalent six months in the ...
Outflowing capital can be caused by any number of economic or political reasons but can often originate from instability in either sphere. Regardless of cause, capital outflowing is generally perceived as undesirable and many countries create laws to restrict the movement of capital out of the nations' borders (called capital controls). While ...
Short-term capital flows in the balance of payments do not show so clear a picture. These more volatile flows have generally added to the net capital outflow, but in some years movements in international differentials in interest rates or other factors led to a net inflow of short-term capital. [1]