Holding everything else constant, a decline in GDP tends to boost the size of creditor and debtor positions as a share of GDP. As a consequence, exporters of oil and tourism services generally experienced deteriorations in their current account balances, with importers of those services on the other side of the ledger. Beyond the depth of the recession, two important shocks affected current account balances: the plummeting price of oil and the collapse in international travel. ![]() Senior Fellow - Economic Studies, The Hutchins Center on Fiscal and Monetary Policyĭuring the year 2020, characterized by the deepest-albeit brief-peacetime recession on record, most creditor countries continued to run current account surpluses and most debtor countries current account deficits.
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