What the current account records
What the current account records

The balance of payments is the record of transactions between UK residents and the rest of the world. At GCSE level, the main focus is the current account, which compares money flowing into the UK with money flowing out and includes trade, income flows, and transfers.
Step-by-step lessons on OCR GCSE Economics 4.2 Balance of payments, covering 4.2.1 Balance of payments on current account, 4.2.2 Balanced account, surplus and deficit, 4.2.3 Calculate deficits and surpluses, 4.2.4 Analyse exports and imports data, 4.2.5 Importance of the balance of payments, and 4.2.6 Causes of surpluses and deficits. Each one builds up to exam-style questions. Build a solid grasp of supply and demand and cost/revenue calculations before tackling the evaluation-heavy policy topics.