How can a current account deficit be financed?

#1 · ,

A deficit in the current account is funded by various capital inflows, including portfolio investments, external commercial borrowings, foreign direct investments and NRI deposits.

#2 · ,

This blog clearly explains how a current account deficit is managed through various capital inflows like FDI and external borrowings. A freight forwarder in Pakistan plays an important role in supporting international trade, which can positively impact the current account by improving export activities. Very informative post!