external balance

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.

external balance

a situation of BALANCE OF PAYMENT EQUILIBRIUM that, over a number of years, results in a country spending and investing abroad no more than other countries spend and invest in it. The achievement of external balance is one of the macroeconomic objectives of the government. Compare INTERNAL BALANCE. See also DEMAND MANAGEMENT, EXCHANGE RATES, MACROECONOMIC POLICY, INTERNAL-EXTERNAL BALANCE MODEL.
References in periodicals archive ?
aBulgaria's 'BBB-' rating is supported by its relatively low government debt and improving external balance sheet,a Fitch said in a rating update on Friday.
By Pratap John Chief Business Reporter Qatar has been able to maintain S&P's /A-1+ rating on the back of strong government and external balance sheet with modest debt and large external liquidity, said Doha Bank Group CEO, Dr R Seetharaman.
According to the agency, strong government and external balance sheet with modest levels of debt and large external liquidity coupled with the country's prosperous economy underpinned by large resource endowment, and a track record of prudent and longterm oil and gas resource development, has enabled the country to retain its rating.
In the fourth quarter of 2011, the EU27 external balance of trade in goods was in deficit by 11.3 billion, compared with a deficit of 30.4 billion for the fourth quarter of 2010.
27 September 2011 - S&P on Monday confirmed its AA/A-1+ sovereign credit ratings on the State of Qatar, citing its robust fiscal and external balance sheets as one of its credit strengths.
Slow recovery of the global economy might reduce oil prices and consequently worsen the fiscal and the external balance.
The resulting significant decline in imports, together with higher-than-expected hydrocarbon prices, have turned the external balance into a surplus.
With Rating Outlook Stable, Uruguay's ratings are supported by strong structural features in terms of social and institutional development, a healthy external balance sheet, and a favourable public debt maturity profile.
The key factor supporting Kazakhstan's rating is the strong state and external balance sheets, which are supported by significant state savings and substantial net foreign assets.
The external balance is particularly vulnerable given the persistent current account deficits that badly affect the foreign exchange reserves.
| KUWAIT, June 19 (KUNA) -- Global rating agency, Fitch, granted Kuwait an 'AA' rating due to the country's strong sovereign and external balance sheets for 2012, Kuwait Chamber of Commerce and Industry (KCCI) announced Tuesday.
In the third quarter of 2011, the EU27 external balance of trade in goods was in deficit by 34.5 billion, compared with a deficit of 31.1 billion in the third quarter of 2010.

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