An indication
As indicated in last week’s article, one can take a look at the current account and understand many things that affect our economy. It was pointed out therein that the current account has three parts, namely the trade account, the primary income account and the secondary income account. Implicit in the presentation was that the current account balance provided an indication as to whether Guyana was saving money or overspending. A positive balance suggests that the country was saving money while a negative balance suggests that there was a gap between the current level of savings and that needed to satisfy investment needs. On a more positive note, investments can grow once the balance is favourable. The greater concern arises when the balance is unfavourable or dissaving is occurring.
