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4 International trade and the global economy

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Question 96

The table shows current account data and forecasts for the Republic of Lydon.

ItemFigure
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 24%
Forecast growth in incomes in Lydon's main trading partners in Year 22%
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.

[3]
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4 International trade and the global economy Questions

  1. GCSE
  2. /Economics
  3. /4 International trade and the global economy

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