The external current account positions of major countries and regions around the world have recently changed substantially. The current account deficit in the US has doubled as a share of GDP over the past five years, current account surpluses have increased in other major developed countries, and surpluses instead of persistent deficits are now regularly recorded in East Asia and virtually every other emerging market region. This situation has generated substantial discussion on the causes of these recent movements and how best to address them. This article outlines the changes in the national saving and investment patterns that underpin these developments, and reviews the outlook for the current pattern and level of international financial flows.
|Journal||Reserve Bank of Australia. Bulletin|
|Publication status||Published - Oct 2005|