Why is the current account deficit usualy expressed as a % of GDP?? (1 Viewer)

[monkey187]

as above

 

[Nick]

if i told you i owed someone 200 dollars.. you wouldnt be able to tell how much of a severe debt that was unless i told you how much i earned.

if i was a millionaire, owing 200 wouldnt matter

but if i made 20 dollars a year, owing 200 would be very serious..

u understand?

 

[timmii]

http://www.boredofstudies.org/community/showthread.php?s=&threadid=18519

 

[Left-ism]

so its relative to economic growth and hence the size of the economy rather than a nominal amount, which is not indicative of its relative size.

 

[monkey187]

thanks alot

 

[Damien]

Two words:

Statistical Accuracy