balance of payments

USAGE SUMMARY

The phrase "balance of payments" is correct and usable in written English.
It is usually used to refer to the difference between the amount of money a country's government, businesses, and citizens pay into and receive from other countries over a certain period of time. For example, "Luxembourg's balance of payments was in the black last year due to large amounts of capital flowing into the country through investments."

✓ Grammatically correct

News & Media

Academia

Encyclopedias

Human-verified examples from authoritative sources

Exact Expressions

48 human-written examples

Q. Balance of Payments Statistics?

Princeton University

Why the balance of payments?

The New York Times

Global Insight contains Balance of Payments Statistics.

Princeton University

Subsequently he applied this theory to the balance of payments.

Cornell University

Choose International Monetary Fund and then Balance of Payments Statistics.

Princeton University

Data-Planet Statistical Datasets also contains Balance of Payments Statistics.

Princeton University

Human-verified similar examples from authoritative sources

Similar Expressions

12 human-written examples

Balance-of-Payments Position and Prospects.

Stanford University

Balance-of-payments problems were few.

Britannica

Devaluation is employed to eliminate persistent balance-of-payments deficits.

Encyclopedia Britannica

Chatter spread of a balance-of-payments problem.

The Economist

Third, Russia has a balance-of-payments surplus.

The Economist

Expert writing Tips

Best practice

Use "balance of payments" to refer to the overall record, and specify its components (current account, capital account, financial account) for more detailed analysis.

Common error

Don't use "trade balance" as a substitute for "balance of payments". The trade balance only considers the difference between exports and imports of goods, while the balance of payments encompasses all international transactions, including services, investments, and capital flows.

Linguistic Context

The phrase "balance of payments" functions as a noun phrase, typically acting as the subject or object of a sentence. As Ludwig AI confirms, it's used to describe the record of all economic transactions between a country and the rest of the world.

Expression frequency: Very common

Frequent in

News & Media

35%

Academia

30%

Formal & Business

15%

Less common in

Encyclopedias

10%

Science

5%

Reference

5%

Ludwig's WRAP-UP

The phrase "balance of payments" is a fundamental concept in economics, referring to the comprehensive record of a country's international financial transactions. As Ludwig AI clearly states, it encompasses not only trade in goods but also services, investments, and capital flows. Its frequent usage in news, academic, and business contexts underscores its importance in understanding a country's economic health. Related phrases like "trade balance" and "current account balance" are often used, but it's crucial to remember that these are components of, not substitutes for, the overall "balance of payments". By understanding its components and implications, one can gain valuable insights into a nation's economic position in the global landscape.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

international payments balance

Reorders the words but retains the core economic meaning related to international financial transactions.

external accounts equilibrium

Uses different terminology to refer to the state of equilibrium in a country's external financial transactions.

international financial position

Broader term indicating a country's overall financial standing in relation to other countries.

current account balance

Focuses specifically on the balance of trade in goods and services, a key component of the balance of payments.

capital account balance

Highlights the balance of investments and capital flows, another significant aspect of the balance of payments.

trade balance

Emphasizes the difference between a nation's imports and exports of goods.

net international investment position

Refers to the difference between a country's external financial assets and liabilities.

financial flow equilibrium

Describes the balance between inflows and outflows of funds in a country.

economic transactions balance

A general term for balancing incoming and outgoing financial transactions.

monetary flow balance

Highlights the equilibrium of monetary inflows and outflows.

FAQs

How is the "balance of payments" calculated?

The "balance of payments" is calculated by summing the current account, capital account, and financial account balances. It reflects all economic transactions between a country and the rest of the world.

What does it mean when a country has a "balance of payments" deficit?

A "balance of payments" deficit means that a country is spending more on foreign goods, services, and investments than it is earning from exports. This can lead to a decrease in foreign reserves and potentially currency devaluation.

What are the main components of the "balance of payments"?

The main components are the current account (trade in goods and services, income, and current transfers), the capital account (capital transfers and acquisition/disposal of non-produced, non-financial assets), and the financial account (investments).

What is the difference between "balance of trade" and "balance of payments"?

The "balance of trade" focuses solely on the difference between a country's exports and imports of goods, while the "balance of payments" is a broader measure that includes all international transactions, encompassing goods, services, investments, and capital flows.