external balance

(redirected from External Balances)

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 ?
The external balances have seen the largest transformation.
These policies have already made progress in reducing the deficit in goods and services trade, and should place external balances on a more sustainable path over the medium term.
The IMF sees the external balances of GCC countries improving substantially after a couple of years of sizeable deficits.
Thus far, the impact of the oil price shock on growth has been limited, but fiscal and external balances have deteriorated significantly, it added.
Preliminary data of the State of Kuwait's BOP of 2015 show a decline in the surpluses of the external balances.
Consequently, for most GCC sovereigns, fiscal and external breakeven oil prices - the oil price level required to achieve at least fiscal and external balances - have "risen sharply" over the past few years, the rating agency noted.
Qatar's programme will aim for medium-term real economic growth, despite contribution to "a deterioration in fiscal and external balances, exacerbated by large fall in oil prices", S&P continued.
Consequently, we have revised our forecasts for Kazakhstan's economic growth and fiscal and external balances," said the S&P.
The international rating agency said the revised outlook for Jordan's rating was supported by expectations that the Kingdom's fiscal and external balances will continue to improve.
Businesses and the government are wondering when the clouds appearing over Pakistan's external balances will go away.
Its twin fiscal and external balances suffered significantly with the onset of the Arab Spring in 2011, with public finances strained by increased spending on social welfare, wages, and oil and food subsidies.
The paper entitled: Arab Countries in Transition:Economic Outlook and Key Challenges, indicated that fiscal and external balances were gradually improving and the macroeconomic situation has remained stable.

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