Explain how a country could have a deficit on its primary income but a current account surplus. 4 marks

1 answer:

7 0

<h2>The following are the reasons for how a country could have a deficit on its primary income but a current account surplus:</h2>

The identified and associated sources of primary income would be different than the sources of financial activities that reflect their collection in the current account.
The expenses on developmental activities could be drawn from the primary account rather than drawing them directly from the current account.
There could be diversions of funds to manage the accounts in order to earn interest on them.

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Explain how a country could have a deficit on its primary income but a current account surplus. 4 marks​

Explain how a country could have a deficit on its primary income but a current account surplus. 4 marks