Extract C states: '...persistent deficits in the trade in goods have been structural, while the net primary income balance has fluctuated wildly with foreign investment yields. Addressing these components of the current account is critical to reduce the UK’s reliance on foreign portfolio investment.'
Using the extracts and your knowledge of economics, discuss the significance of a persistent current account deficit for the performance of the UK economy.
310 exam-style questions on AQA A Level Economics 2.6 The international economy (A-level only), covering 2.6.1 Globalisation, 2.6.2 Trade, 2.6.3 The balance of payments, 2.6.4 Exchange rate systems, and 2.6.5 Economic growth and development. Each one has a worked solution and a mark scheme showing where the marks go.