"The current account refers to an account in the balance of payments, which is used to record the income and expenditure of economic activities such as trade in goods, service trade, and capital transfer between a country and other countries. The current account includes trade balance, service balance There are four parts, net income and net transfer. Among them, trade balance refers to the income and expenditure of import and export of goods; service income and expenditure refers to the income and expenditure of service import and export such as tourism, transportation, insurance, and finance; Income and expenditure of labor income; net transfer refers to income and expenditure of gratuitous transfers and gifts.
The ratio of current account to GDP is an important indicator to measure a country's foreign trade and economic activities. If the ratio of current account to GDP is high, it means that the country is highly dependent on foreign trade and economic activities, and trade and investment activities play an important role in promoting the country's economic growth. If the ratio of the current account to GDP is low, it means that the country's economic growth depends more on factors such as internal consumption and investment.
In the field of international economy, the ratio of current account to GDP is an important macroeconomic indicator. Generally, a current account-to-GDP ratio below 2% is considered low, while above 4% is considered high. If a country's current account accounts for more than 5% of GDP, it may face problems such as an imbalance in the balance of payments and a decline in foreign exchange reserves. Therefore, for a country, it is very important to maintain a balance in the current account, and at the same time, pay attention to controlling the ratio of the current account to GDP. "