Definition

Noun: An economic situation where a country's total payments to other countries for imports of goods, services, and capital exceed its total receipts from other countries for exports. This imbalance can lead to a depletion of foreign exchange reserves and may require corrective economic policies.

Usage

This term is used in economics, international finance, and policy discussions to describe a specific type of macroeconomic disequilibrium. It is typically a formal or technical term. * The government is concerned about the growing balance-of-payments problem. * A persistent balance-of-payments problem can weaken a nation's currency. * Economists are analyzing the causes of the country's balance-of-payments problem.

Advanced Usage

• Structural vs. Cyclical: A balance-of-payments problem can be described as (caused by long-term inefficiencies) or (caused by short-term economic fluctuations).
• "To face/address/have a balance-of-payments problem": Common collocations describing the existence or management of this issue.
  • The nation is facing a severe balance-of-payments problem that requires immediate attention.

Variants and Related Words

• Balance of Payments (BoP) (n): The systematic record of all economic transactions between residents of a country and the rest of the world during a specific period. A balance-of-payments problem is a negative condition within this broader accounting framework.
• Current Account Deficit (n): A major component of the balance of payments, it occurs when the value of imports of goods and services exceeds exports. This is a common direct cause of a balance-of-payments problem.
• Payments Deficit (n): A less formal synonym for a balance-of-payments problem.

Synonyms

• External deficit
• Payments imbalance
• BoP deficit

Antonyms

• Balance-of-payments surplus
• External surplus
• Payments surplus

Noun

1. an economic problem caused by payments for imports being greater than receipts for exports