Question

The GDP for the United States is \(18,036 billion and its current account balance is –\)484 billion. What percent of GDP is the current account balance?

Short answer

2.68%

Step-by-step solution

Step1. Introduction

The current account of a nation shows the value of trade in goods and services along with the flow of income and aid. Balance in current account means that the nation is receiving the same amount of money it is sending.

Step2. Calculation

Current Account balance is calculated a percentage of GDP, by taking a ratio of the two and multiplying by 100, as calculated below:

$$\begin{gathered} Currentaccountbalanceas\%ofGDP=CurrentAccountBalance/GDP \\ =484/18036 \\ =2.68\% \end{gathered}$$