Economic Issues Help! (1 Viewer)

[SGSII]

Hi Guys,
So I was revising economic issues for my trials, and I cant seem to understand the following points:
Current Account Deficit (CAD) as a percentage of Gross Domestic Product (External Stability)
Net foreign debt as a percentage of Gross Domestic Product (External Stability)
Net foreign liabilities as a percentage of Gross Domestic Product (External Stability)
Ecologically sustainable development (Environmental Sustainability)
Could someone please help explain it?
Any help is good help
Thanks

 

[kwu1]

What exactly don't you get about it? How they work and what they show?

 

[SGSII]

Yes, I don't understand how they work and what they show.

 

[SGSII]

Please help!

 

[Kurby]

Hi Guys,
So I was revising economic issues for my trials, and I cant seem to understand the following points:
Current Account Deficit (CAD) as a percentage of Gross Domestic Product (External Stability)
Net foreign debt as a percentage of Gross Domestic Product (External Stability)
Net foreign liabilities as a percentage of Gross Domestic Product (External Stability)
Ecologically sustainable development (Environmental Sustainability)
Could someone please help explain it?
Any help is good help
Thanks

Generally off the top of my head:

CAD: The current Account is the sum of the balance of payment (exports minus imports), net factor income (interest and dividends on earnings of foreign investments minus payments to foreign investors) and net transfers (foreign aid).

Net foreign debt as a percentage of Gross Domestic Product (External Stability): Debt Australia owes minus debt owed to Australia

Net foreign liabilities as a percentage of Gross Domestic Product (External Stability): Liabilities? Is this just gross debt owed to the rest of the world. Its like around 20% of GDP at the moment. Once you have more debt than your economy like Greece (i.e. > 100%), then your economy tanks.

Ecologically sustainable development (Environmental Sustainability): Development that doesn't destroy the environment. OR in terms of economics, Assigns private rights to a party to a public good/ environmental issue so the outcome is efficient.