## Balance of payments - calculation

The IB exams will use a standard structure for the balance of payments. This will be as follows:

Credits (+), Debits (-) \$m (2011)
Current account
1 Exports of goods 555
2 Imports of goods -635
3 Balance of trade in goods -80
4 Exports of services 185
5 Imports of services -215
6 Balance of trade in services -30
7 Income receipts (investment income) 225
8 Income payments (investment income) -215
9 Net income receipts (investment income) 10
10 Current transfers (net) -35
11 Net income flows -25
12 Current account balance -135
Capital account
13 Capital account transactions (net) 25
Financial account
14 Direct investment, net 55
15 Portfolio investment, net -15
16 Reserve assets funding 45
17 Errors and omissions 25
18 Capital and financial account balance 135

You need to be able to calculate any of these figures if they are missing. Try the following examples. Once you have done the calculations, follow the links below for the answers to see if you were correct.

### Calculation example (1)

Fill in the missing figures from the balance of payments account for Country B given below:

Credits (+), Debits (-) \$m (2011)
Current account
1 Exports of goods ??
2 Imports of goods -425
3 Balance of trade in goods -40
4 Exports of services 165
5 Imports of services -185
6 Balance of trade in services ??
7 Income receipts (investment income) 190
8 Income payments (investment income) ??
9 Net income receipts (investment income) 15
10 Current transfers (net) -50
11 Net income flows ??
12 Current account balance ??
Capital account
13 Capital account transactions (net) 40
Financial account
14 Direct investment, net 65
15 Portfolio investment, net -50
16 Reserve assets funding 20
17 Errors and omissions 20
18 Capital and financial account balance ??

### Calculation example (2)

Fill in the missing figures from the balance of payments account for Country B given below:

Credits (+), Debits (-) \$m (2011)
Current account
1 Exports of goods 1545
2 Imports of goods -1305
3 Balance of trade in goods ??
4 Exports of services 490
5 Imports of services -365
6 Balance of trade in services ??
7 Income receipts (investment income) 410
8 Income payments (investment income) -525
9 Net income receipts (investment income) ??
10 Current transfers (net) -70
11 Net income flows ??
12 Current account balance ??
Capital account
13 Capital account transactions (net) ??
Financial account
14 Direct investment, net -220
15 Portfolio investment, net -95
16 Reserve assets funding 25
17 Errors and omissions -30
18 Capital and financial account balance ??