Given the following
exports of merchandise 107
exports of services 34
net unilateral transfers 7
statistical discrepancy 0
official settlements balance 22
imports of services 22
capital inflow 6
imports of merchandise 119
capital outflow 29
Calculate the balance on merchandise trade, the balance on goods, services and income, and the current account balance. Indicate whether these balances are deficits or surpluses.
To calculate the balance on merchandise trade, we need to subtract the imports of merchandise from the exports of merchandise.
Balance on merchandise trade = Exports of merchandise - Imports of merchandise
= 107 - 119
= -12
Since the result is negative, the balance on merchandise trade is a deficit.
To calculate the balance on goods, services, and income, we need to add the balance on merchandise trade, exports of services, imports of services, and net unilateral transfers.
Balance on goods, services, and income = Balance on merchandise trade + Exports of services + Imports of services + Net unilateral transfers
= -12 + 34 + 22 + 7
= 51
Since the result is positive, the balance on goods, services, and income is a surplus.
To calculate the current account balance, we need to add the balance on goods, services, and income with the statistical discrepancy.
Current account balance = Balance on goods, services, and income + Statistical discrepancy
= 51 + 0
= 51
Since the result is positive, the current account balance is a surplus.