The table shows current account data and forecasts for the Republic of Lydon.
| Item | Figure |
|---|---|
| Total current account inflows in Year 1 | £410 billion |
| Total current account outflows in Year 1 | £392 billion |
| Forecast growth in domestic incomes in Year 2 | 4% |
| Forecast growth in incomes in Lydon's main trading partners in Year 2 | 2% |
| Forecast increase in export receipts due to income growth | £8 billion |
| Forecast increase in import payments due to income growth | £14 billion |
Assume all other influences on the current account remain unchanged.
Using the data, explain how the current account balance is likely to change in Year 2.
52 exam-style questions 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 has a worked solution and a mark scheme showing where the marks go.