What is current account in bop

The Current Account in the Balance of Payments (BoP) records a country's net income from international transactions involving goods, services, and transfers. It reflects whether a nation is a net lender or borrower. The primary components include:

• Trade Balance: The difference between the value of exported and imported goods and services.
• Primary Income: Earnings from foreign investments, such as interest and dividends.
• Secondary Income: Unilateral transfers like personal remittances sent by Indians working abroad or international aid.

A surplus indicates higher earnings from abroad, while a deficit means higher spending on foreign transactions.