A current account deficit must be exactly offset by a capital and financial account surplus.

Name: A current account deficit must be exactly offset by a capital and financial account surplus.
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According to the balance of payments accounting principle, a current account deficit (imports exceeding exports) must be exactly offset by a capital and financial account surplus (inflows of foreign investment or borrowing). This ensures that a country's overall balance of payments equals zero.

A Current Account Deficit Must Be Exactly Offset by a Capital