The table below shows selected components of an economy's balance of payments on current account as a percentage of GDP between 2018 and 2021.
| Year | Balance of trade in goods and services | Primary income balance | Secondary income balance | Current account balance |
|---|---|---|---|---|
| 2018 | -0.8 | -1.2 | -1.0 | -3.0 |
| 2019 | -1.9 | -1.1 | -1.1 | -4.1 |
| 2020 | -2.8 | -1.3 | -0.9 | -5.0 |
| 2021 | -4.2 | -1.4 | -1.0 | -6.6 |
It can be concluded from the data that between 2018 and 2021 the main reason for the rise in the current account deficit as a percentage of GDP was
GDP growing faster than the deficit on the current account.
the deterioration in the balance of trade in goods and services.
the deterioration in the primary income balance.
the growth in the deficit on the secondary income balance.
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.