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BALANCE OF PAYMENTS – BPM

Statistics Directorate    
French Equivalent: Balance des paiements - MBP

Definition:
The balance of payments is a statistical statement that systematically summarises, for a specific time period, the economic transactions of an economy with the rest of the world.

Context:
Transactions for the most part between residents and non-residents, consist of those involving:

- goods, services and income;
- those involving financial claims on, and liabilities to, the rest of the world; and
- those (such as gifts) classified as transfers which involve offsetting entries to balance, in an accounting sense, one-sided transactions.

The standard components of the balance of payments are comprised of two main groups of accounts:

- the current account pertains to goods and services, income, and current transfers; and
- the capital and financial account pertains to (i) capital transfers and acquisition or disposal of non-produced, non-financial assets and (ii) financial assets and liabilities.

A transaction itself is defined as an economic flow that reflects the creation, transformation, exchange, transfer, or extinction of economic value and involves changes in ownership of goods and/or financial assets, the provision of services, or the provision of labour and capital.

Source Publication:
BPM, paras, 13, 149.

Cross References:
Balance of payments – Eurostat

Hyperlink:
http://www.imf.org/external/np/sta/bop/BOPman.pdf

Version Indicator: BPM

Statistical Theme: Financial statistics - Balance of payments

Created on Tuesday, September 25, 2001

Last updated on Friday, December 02, 2005