Explained: The shrinking surplus


Slowing exports of goods: A container ship berthing at Port of Tanjung Pelepas. Merchandise exports of goods (gross exports) had displayed weakening momentum from 6.7% per annum (pa) in 1998-2011 to 4% pa in 2012-2023.

THE current account balance of the balance of payments is a barometer of how a country earns its income (exports of goods and services) and spends (imports of goods and services).

When a country runs narrowing current account surpluses or current account deficits, market investors are often quick to raise concern: is the country spending beyond its means; and is it structural or cyclical and unsustainable?

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