BOP has to balance, however surpluses or deficits on its individual elements may create imbalances. There are concerns about deficits in the current account. The types of deficits that typically raise concerns are −
● A visible trade deficit in case of a nation that is importing significantly more goods than it exports.
● An overall current account deficit.
● A basic deficit which is the current account plus FDI, excluding short-term loans and the reserve account.
