Significant debt forgiveness and reduced service and merchandise revenues, both effects of the recent global economic crisis, are reflected in the U.S. Balance of Payments current account deficit.

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The U.S. Balance of Payments current account includes transactions in goods, services, primary income, and secondary income. Significant debt forgiveness would reduce the amount of primary income received from abroad, and reduced service and merchandise revenues would decrease exports. Both effects would contribute to a larger current account deficit by reducing inflows or increasing outflows in the account.

Significant Debt Forgiveness and Reduced Service and Merchandise Revenues, Both