Module 10: Discussion Forum Select A Country

20 hours agoBandar Alrwiliy Discussion 10COLLAPSETop of FormThe country under consideration for the balance of payment is Russia. Russia's Current Account Balance is updated quarterly, and the last quarter ending Jun 2019 Current Account posted a surplus of $17.6 compared to a surplus of $23.4 in the quarter ending March, 2019 (Stats.oecd.org, 2019). The driving factors for the surplus include: an increase in export of Goods and Services compared to a nearly stagnant import of Goods and Services; there was an increase in Foreign Direct Investment (FDI) by $ 5.7 bn in Jun 2019; Growth of Business Confidence leading to more consumption and investment; Growth of Consumer Confidence; increase in Credit to Households and Private Non-Financial Sector; export of oil increased; an increase in Domestic Credit leading to more consumption and investment (Ceicdata.com, 2019). Generally, there was an improvement in factors that boost growth of the economy including investment, export, consumption, credit and confidence. There are several implications of surplus current account to the overall economy. First, it means that the economy is exporting more value in goods and services compared to imports and this indicates a deficit on the financial/capital account. Basically, the country will have