Net lending or borrowing of the economy

Definition

It is the excess of credits over current and capital payments (net lending) or the excess of debits over income (net borrowing) of the economy in relation to the rest of the world.

Further information

In terms of a country’s balance of payments, the net lending (+) or borrowing (-) of an economy is determined by the sum of the balance of its current and capital accounts with the rest of the world. The capacity will be reflected in a net outflow of financial flows, and the need in a net inflow from non-residents, flows that are recorded in the financial account of the balance of payments.

The Balance of Payments and the International Investment Position. Methodological Note.