The current account balance is a key component of a country's balance of payments, reflecting the difference between its total exports and imports of goods and services, as well as net income from abroad and net current transfers. It provides insights into a country's international economic position, indicating whether it is a net lender or borrower in the global economy. A surplus suggests that a country exports more than it imports, while a deficit indicates the opposite, influencing exchange rates and overall economic health.
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