During a period of rapid domestic economic growth, a country recorded the following spending.
| Year 1 (£ billion) | Year 2 (£ billion) | |
|---|---|---|
| Residents' spending on holidays abroad | 24 | 30 |
| Foreign visitors' spending on holidays in the country | 26 | 28 |
Using the data, explain how rapid domestic economic growth may have contributed to a worsening of the country's current account.
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.