Difference between Current account and Balance of trade
 

Hello. Please tell the difference between these two. They seem same to me, but there should be something I am missing.

The main components of the current account are:

1)Trade in goods (visible balance)
2)Trade in services (invisible balance) e.g. insurance and services
3)Investment incomes e.g. dividends, interest and migrants remittances from abroad
4)Net transfers – e.g. International aid


On the other hand balance of trade is simply difference between exports and imports,both of merchandise goods and services.

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