invisible balance

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invisible balance

A country's invisible balance is shown as a simple chart with arrows representing services and income flows.

Definition

Noun: The difference in value, over a specific period, between a country's earnings from and spending on services, property income, and other "invisible" (non-merchandise) transactions. It is a component of a nation's balance of payments, contrasting with the "visible balance" which tracks trade in physical goods.

Usage

The term is used in economics and international finance to analyze a country's economic performance in sectors like banking, insurance, tourism, shipping, and investment income. It is typically discussed in the context of a nation's overall current account.

Examples
  • Noun:
    • The country's invisible balance showed a surplus, thanks to strong earnings from financial services and tourism.
    • Economists are concerned about the deteriorating invisible balance, as payments to foreign investors are rising faster than service exports.
Advanced Usage
  • "Invisible balance of payments": A broader term often used synonymously with the "balance of services and income," highlighting its role within the full balance of payments framework.
    • The report detailed the invisible balance of payments, separating income from services and investments.
Variants and Related Words
  • Visible balance (n): The balance of trade in physical, tangible goods (exports and imports of merchandise).
  • Current account balance (n): A broader measure that includes both the visible balance (trade in goods) and the invisible balance (trade in services, income, and current transfers).
  • Balance of payments (n): The complete record of all economic transactions between a country and the rest of the world.
Synonyms
  • Balance on services and income: A more descriptive, modern synonym often used in official economic statistics.
  • Non-merchandise trade balance: A descriptive phrase emphasizing the contrast with trade in physical goods.
Related Phrases
  • Invisible exports/imports: Refers to the individual components (services, income flows) that make up the invisible balance.
    • Software licensing fees and royalties are important invisible exports for the country.
invisible balance

A country's invisible balance is shown as a simple chart with arrows representing services and income flows.

Noun
  1. the difference in value over a period of time of a country's imports and exports of services and payments of property incomes