balance-of-payments problem
A country faces a balance-of-payments problem when its imports exceed its exports.
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.
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.
- 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.
- 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.
- External deficit
- Payments imbalance
- BoP deficit
- Balance-of-payments surplus
- External surplus
- Payments surplus
A country faces a balance-of-payments problem when its imports exceed its exports.
- an economic problem caused by payments for imports being greater than receipts for exports