Question

When a country having trade deficit can have current account surplus. Is it possible ? Mention The situation where it is possible?​

Answer 1

Yes. A country can have a trade deficit and current account surplus simultaneously. In a high saving country, people give loans to other countries by purchasing foreign assets and earns interest on them. The inflow of interest finances the net imports of the goods.

$.$

Answer 2

Yes. A country can have a trade deficit and current account surplus simultaneously. In a high saving country, people give loans to other countries by purchasing foreign assets and earns interest on them. The inflow of interest finances the net imports of the goods.

[tex][/tex]