There are numerous elements that can give clues about an economy’s health status, and one of them is the current account balance, so we wanted to take a look and see which are the countries with the highest current account deficit in 2017.
A country’s current account is a component of the balance of payments, along with the capital account. Now, the current account is also made out of multiple factors, such as the balance of trade, the net primary income, and the net cash transfers. It all helps measure a country’s foreign trade. When a country has a current account surplus, it indicates that the value of its net foreign assets grew. When it has a current account deficit, it obviously means that it shrank.
For instance, the list of countries with current account surpluses in 2015 was led by China, IMF data reveals, with a whopping $304, 164 billion, followed by Germany ($280,269 billion), and Japan ($135,58 billion). By the time the next year came around, the current account balance by country in 2016 looked different, with Germany overtaking China by quite a bit, with Japan maintaining its third position. More specifically, Germany’s current account balance indicated it had $294,34 billion, while China’s had lowered to $196,38 billion.
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While the terms may seem similar, and many hope to find here a list of countries by the budget deficit, this is a completely different matter. In fact, the budget deficit indicates how much a country’s government spends, compared to the money it has incoming from taxes and other sources. The list of the budget deficit by country for 2016, for instance, is led by the tiny island of Timor-Leste, whose deficit is nearly 90% of its GDP. Similarly, if you’re looking for the balance of payments data by country, you’ll only find part of a component here, since the balance of payments includes both the current account and the capital account.
One thing that is a part of the current account balance is the trade deficit. The list of the top trade deficit countries is led by the United States, which imports a lot more than it exports. The list for trade deficit by country in 2015, for instance, saw the United States with over $800 billion more in imports than in exports. If you’re interested in data about world trades, you might also want to read up on the countries that export the most fruit in the world, as well as the easiest countries to export to.
Nonetheless, to create our list today, we checked out the data coming from the International Monetary Fund (IMF) who ran some estimates on how the current account balance looks for each country for the next few years. Unsurprisingly, the IMF’s data is usually pretty accurate, so there should be no issues with the numbers here. We had two options here – use the straight-out numbers, the values in billions of dollars for each country’s deficit, or choose to see what those numbers actually mean for each country. So what’s the current account balance as a percentage of GDP meaning? Well, this percentage perfectly relays the macroeconomic instability in the country, which is not necessarily conducive to sustained economic growth, regardless if we’re talking about surplus or deficit, as neither is ideal.
That being said, here are the countries with the highest current account deficit in 2017.
15. Mauritania
Part of GDP: %15.129
Value in $billions: 0,766
First up on our list is Mauritania, a country located in West Africa, with an estimated population of 4.3 million citizens, spread over 1 million square kilometers (400,000 square miles). The IMF estimates Mauritania’s GDP for 2017 to be around $5.000 billion, a number that puts the country on the 154th spot globally.
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14. Lebanon
Part of GDP: %15.508
Value in $billions: 8,361
Located in Western Asia, Lebanon is a country that’s called home by some 6 million citizens. The country’s territory measures just 10,452 square kilometers (4,036 square miles), and its GDP was estimated at close to $54.000 billion, making it the 86th country in the world.
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13. Maldives
Part of GDP: %16.714
Value in $billions: 0,598
Next up on our list of countries with the highest current account deficit in 2017 is the mesmerizing Maldives. Located in the middle of the Indian Ocean, the Maldives is made out of nearly 1,200 coral islands inhabited by over 427,000 people, although millions have visited the remote location. The nation’s GDP was estimated at $3.578 billion for 2017.
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12. Sierra Leone
Part of GDP: %17.848
Value in $billions: 0,73
Located in West Africa, Sierra Leone is a country whose name is tightly associated with diamonds. The country is home to over 7 million people spread over a territory of 71,740 square kilometers (27,700 square miles). The IMF estimates the country’s GDP to just over $4.088 billion.
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11. Niger
Part of GDP: %18.053
Value in $billions: 1,385
The next nation on the list of countries with the highest current account deficit in 2017 is Niger, a nation with a population of over 20.6 million citizens. The country’s area is of over 1.26 million square kilometers (489,000 square miles). The IMF also estimates the country’s GDP for 2016 was equivalent to $7.674 billion.
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10. St. Kitts and Nevis
Part of GDP: %18.343
Value in $billions: 0,174
Located in the Carribean, the two-island nation is also part of the list of countries with the highest current account deficit in 2017. With a population of close to 55,000 citizens, the country spreads over 261 square kilometers (101 square miles). Its GDP was estimated by the IMF at a mere $945 million for 2016.
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9. St. Vincent and the Grenadines
Part of GDP: %18.371
Value in $billions: 0,149
Another island in the Carribean, just west of Barbados, is St. Vincent, a nation that is home to just 109,000 people. The islands have a territory of just 389 square kilometers (150 square miles) and a GDP estimated by the IMF at a mere $784 million, a small number, but one that makes sense to such a small country.
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8. Grenada
Part of GDP: %18.712
Value in $billions: 0,204
Not far from St Vincent we have Grenada, another nation on the list of countries with the highest current account deficit in 2017. With a population of 107,000 people spread over 248.5 square kilometers (134.6 square miles), Grenada has an estimated GDP of $1 billion.
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7. Laos
Part of GDP: %18.849
Value in $billions: 2,822
Finally moving a bit from the Carribean area, we have Laos, in the Indochinese peninsula. The nation has over 6.7 million citizens, spread over 237,955 square kilometers (91,875 square miles) and a GDP estimated at close to $15.000 billion.
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6. Seychelles
Part of GDP: %19.09
Value in $billions: 0,281
Known as a fiscal paradise, Seychelles isn’t doing all that great for itself if we’re to take into account its presence on the list of countries with the highest current account deficit in 2017. Nonetheless, the magnificent territory is called home by over 92,000 people, spread over just 459 square kilometers (177 square miles). The nation’s GDP has been estimated by the International Monetary Fund at close to $1.500 billion.
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5. Djibouti
Part of GDP: %21.562
Value in $billions: 0,45
Located in the Horn of Africa, Djibouti is a rather small nation, just over 865,000 citizens. The country’s territory barely covers 23,200 square kilometers (9,000 square miles), and its GDP hits $2.088 billion by the IMF’s estimates, which is quite ok for a country this size.
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4. Montenegro
Part of GDP: %22.004
Value in $billions: 0,921
Located in Southern Europe, Montenegro is another nation on the list of countries with the highest current account deficit in 2017. The country is home to close to 679,000 citizens spread over just 13,812 square kilometers (5,333 square miles), so it’s a rather small nation. The nation’s GDP was estimated at $4.250 billion for 2016.
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3. Liberia
Part of GDP: %26.575
Value in $billions: 0,589
In West Africa, we have Liberia, a country with just 4.5 million citizens, spread over 111,369 square kilometers (43,000 square miles). The IMF estimates the country’s GDP at $2.106 billion.
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2. Bhutan
Part of GDP: %29.378
Value in $billions: 0,678
Next up on our list of countries with the highest current account deficit in 2017 is Bhutan, a nation located in the Eastern Himalayas. The country has a population of under 800,000 people and a GDP of $2.308 billion. It is the second less populous nation in the area, after the Maldives, with a rather low median age of 24.8 years.
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1. Mozambique
Part of GDP: %34.797
Value in $billions: 3,887
Finally, at the top of our list, we find Mozambique, a Southeast African country. With a population of over 24.6 million and a massive territory os 801,590 square kilometers (309,500 square miles), Mozambique is a country that’s been going through a lot of economic reforms in the past few years, so we’ve seen quite a few ups and downs in the area. The IMF estimates it has a GDP of over $11.170 billion this year.
Being on this list isn’t exactly the best, but it’s not the worst thing on the planet, either. Thankfully, economies change constantly, and the situation can change year after year, so it’s quite likely we’ll see other occupants of many of these positions next year. Of course, when a country’s economy doesn’t bounce back for a longer period, it’s clear changes need to be made on how the nation is governed to make room for smarter policies to be implemented.
That being said, these have been the countries with the highest current account deficit in 2017.
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