The current account is a component of a country’s balance of payments, which records all economic transactions between that country and the rest of the world over a specific period, typically a year. The current account records a country’s international transactions in goods, services, and income, as well as unilateral transfers. It represents the difference between a country’s exports and imports of goods and services, plus its net income from abroad and net transfers received. A current account surplus means that a country is earning more from its exports than it is spending on imports, while a deficit means the opposite. The current account is an important economic indicator, as it reflects a country’s competitiveness, trade balance, and international debt position.