Introduction

Using the second definition of the current account we note that if deficit occurs in a country that is highly productive and growing, a current account deficit may be considered a natural outcome.
On the other hand if the deficit is caused by reckless fiscal policy or increase in consumption expenditures then the current account deficit can no longer be considered a natural phenomenon.

Using the second definition of the current account we note that if deficit occurs in a country that is highly productive and growing, a current account deficit may be considered a natural outcome.