Balance of Payments

The Balance of Payments of a country includes all trade (visible and invisible). It is the difference between all the money coming into the country (total exports) and all money going out of the country (total imports).

Balance of Payments = Total Exports - Total Imports

When total exports are greater than total imports there is a surplus in the balance of payments. This is favourable for a country as it means it is earning more than it is spending. When total exports are less than total imports there is a deficit in the balance of payments. This is unfavourable for a country, because it is spending more than it is earning.

Irish Times discussion of Irish Balance of Payments March 2012

Final Quarter 2011 Balance of Payments statistics