Question

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

Short answer

The current account balance is $2.68$percent of GDP.

Step-by-step solution

Step 1. Meaning of current account balance.

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 recieving the same amount of money it is sending.

Step 2. Percent of GDP is the current account balance.

GDP $=\$18,036$billion

Current account balance $=-\$484$billion.

The required percent is,

$(\frac{currentaccountbalance}{GDP}\times 100)\%$

=$$\begin{gathered} =(\frac{484}{18,036}\times 100)\% \\ =(0.0268\times 100)\% \\ =2.68\% \end{gathered}$$