Välisbilanssi

Välisbilanssi, also known as the balance of payments, is a statistical record of all economic transactions between a country and the rest of the world over a specific period. It provides a comprehensive overview of a nation's financial dealings with foreign entities, encompassing trade in goods and services, investment flows, and unilateral transfers. The välisbilanssi is typically divided into two main accounts: the current account and the capital and financial account.

The current account records transactions involving goods, services, primary income, and secondary income. The trade balance, which is part of the current account, reflects the difference between a country's exports and imports of goods. The services balance accounts for exports and imports of services such as tourism, transportation, and financial services. Primary income includes earnings from foreign investments and wages paid to foreign workers. Secondary income encompasses remittances and foreign aid.

The capital and financial account, on the other hand, records transactions related to the ownership of assets and liabilities. The capital account captures capital transfers and the acquisition or disposal of non-produced, non-financial assets. The financial account tracks direct investment, portfolio investment, other investment, and reserve assets.

A surplus in the välisbilanssi indicates that a country has received more funds from abroad than it has sent out, suggesting it is a net lender to the rest of the world. Conversely, a deficit implies that a country has sent out more funds than it has received, indicating it is a net borrower. The välisbilanssi is a crucial tool for policymakers to assess a country's economic health, understand its international financial position, and inform economic policy decisions.