Balance of payment surplus implies that receipts for exports are

Assessment: WAEC SSCE - Economics - 2016 (Objective) Subject: Economics

Question 1 Report

Balance of payment surplus implies that receipts for exports are

Answer Details
A balance of payment surplus means that a country has earned more money from its exports than it has spent on imports. In other words, the receipts from exports are greater than the payments for imports. This indicates that the country is exporting more goods and services than it is importing, which can have positive effects on the economy. A surplus in the balance of payments means that there is a net inflow of foreign currency into the country, which can be used to pay off debts or invest in domestic industries. This can lead to a stronger currency, lower inflation, and increased economic growth.
Read lesson note on International Trade And Balance Of Payments (WAEC)
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