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External Balance
(redirected from External Balances)

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External Balance
A situation in which the money a country brings in from exports is roughly equal to the money it spends on imports. That is, external balance occurs when the current account is neither excessively positive nor excessively negative. An external balance implies capital movement. That is, a country needs to have both imports and exports to maintain an external balance; it is not sufficient simple to note no balance by not buying and selling goods. An external balance is considered sustainable. See also: Internal balance.


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As a result of the rebound in oil prices and oil production levels, the fiscal and external balances of Gulf nations are expected to improve significantly.
The rise in oil prices by 23 per cent in 2010 and more than three per cent in 2011 would also lead to a marked turnaround in external balances, it said.
The Czech Republic's sovereign creditworthiness is supported by the country's macroeconomic resilience and policy flexibility, which is underpinned by a credible monetary policy regime, robust banking system, strong external balances and a moderate level of government indebtedness," said David Heslam, Director in Fitch's Sovereign group.
 
 
 
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