Secondary income (Balance of Payments)

Definition

Current transfers (in cash or in kind) between residents and non-residents. By exclusion, all transfers that are not capital transfers are included. Current transfers are mainly aimed at financing consumption (goods and services), while capital transfers are primarily aimed at financing investment.

Further information

Current transfers are mainly aimed at financing consumption (goods and services), while capital transfers are primarily aimed at financing investment.

This account records various types of current transfers to show the role they play in the income distribution process among economies. It includes personal transfers, current taxes, social contributions, social benefits, net non-life insurance premiums and standardized guarantee calls, current international cooperation, and miscellaneous current transfers.

Secondary income is part of the current account of the Balance of Payments.