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The Balance of Capital Account is a record of all transactions which alter the external assets and/or liabilities of a country. It represents the net change in ownership of national assets and includes capital transfers and the acquisition/disposal of non-produced, non-financial assets.
The calculator uses the formula:
Where:
Explanation: This formula calculates the overall balance by summing up the net non-produced assets, non-financial assets, and net capital transfers.
Details: Calculating the Balance of Capital Account is crucial for understanding a country's international financial position, tracking capital flows, and assessing economic stability and sustainability of external accounts.
Tips: Enter values for Surpluses or Deficits of Net Non-Produced, Non-Financial Assets, and Net Capital Transfers. The calculator will sum these values to provide the Balance of Capital Account.
Q1: What are non-produced assets?
A: Non-produced assets are assets that come into existence other than through processes of production, such as natural resources, contracts, leases, and goodwill.
Q2: How do capital transfers differ from current transfers?
A: Capital transfers involve the transfer of ownership of fixed assets or funds linked to acquisition/disposal of fixed assets, while current transfers are transfers intended for current use.
Q3: What is included in non-financial assets?
A: Non-financial assets include physical assets such as real estate, equipment, and machinery, as well as intangible assets like patents and copyrights.
Q4: How often should the Balance of Capital Account be calculated?
A: Typically calculated quarterly or annually as part of a country's balance of payments statistics by national statistical agencies and central banks.
Q5: What does a positive Balance of Capital Account indicate?
A: A positive balance indicates net capital inflow into the country, meaning the country is receiving more capital from abroad than it is sending out.