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 ?
The Ee"stableEe" outlook reflects the expectation that Kuwait's public and external balance sheets will remain strong over the forecast horizon, backed by a significant stock of financial assets.
The country's external balance sheet has started to recover.
Kazakhstan's IDRs balance strong public and external balance sheets, underpinned by large government savings and a substantial sovereign net foreign asset position, against high commodity dependence, a weak banking sector, weak governance indicators and volatile macroeconomic performance compared with 'BBB' peers.
of Singapore expects the country's external balance to worsen over the next two years with the current account (CA) deficit breaching one percent of the domestic output.
Download Future Movement, Bloc: Hariri's return is necessary to restore respect to Lebanon's internal and external balance NNA - "Future" parliamentary bloc and "Future" Movement politburo jointly stressed that the return of PM Saad Hariri to Lebanon is "necessary" to restore dignity and respect for Lebanon's internal and external balance.
Saudi Arabia's ratings are supported by strong fiscal and external balance sheets, including exceptionally high international reserves, low government debt and significant government assets and strong commitment to an ambitious reform agenda," Fitch said.
The external balance is particularly vulnerable given the persistent current account deficit, affecting the country's reserve position.
Although capital spending cuts and import compression have helped to improve the fiscal and external balance projections since June, the country's real economic growth has slowed.
It is pertinent to mention that the World Bank has also warned that macroeconomic risks in Pakistan have increased substantially during fiscal year 2017, as the external balance is particularly vulnerable given the persistent current account deficit, affecting the country's reserve position.
It describes recent developments and the near-term outlook, risks to the outlook, and policy recommendations; demographic challenges, primarily the speed of aging, and the growth, external balance, financial market, and policy implications; and the slowdown of productivity growth and the factors involved, including sluggish investment, little impetus from trade, slowing human capital formation, reallocation of resources to less productive sectors, and the aging population.
The external balance (exports - imports) is negative.
Stressing that new policies will dictate long-term growth prospects, Nordberg also included in his list education; actions to secure the competitiveness of the business process outsourcing (BPO) industry such as setting up necessary telecommunication infrastructure, ensuring sufficient levels of labor and providing incentives and government subsidies; sustaining the current economic conditions of high employment, stable inflation and healthy external balance sheet; continued fight against corruption; and sustainable growth of the renewable energy industry.

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