What is Balance of Capital Account?
The balance of the capital account is a component of a nation's balance of payments (BoP) that measures the flow of financial assets between a country and the rest of the world over a specified period. The capital account includes transactions in financial assets such as stocks, bonds, real estate, and direct investments. A positive balance in the capital account indicates that a country is receiving more investment from foreign sources than it is investing abroad, while a negative balance suggests the opposite. This balance reflects the net change in a country's ownership of foreign assets and foreign ownership of domestic assets. In summary, the capital account balance provides insights into the financial relationships between a country and the rest of the world, highlighting the inflows and outflows of investment capital.
How to Calculate Balance of Capital Account?
Balance of Capital Account calculator uses Balance of Capital Account = Surpluses or Deficits of Net Non-Produced+Non-Financial Assets+Net Capital Transfers to calculate the Balance of Capital Account, The Balance of Capital Account keeps track of the net change in a nation's assets and liabilities during a year. Balance of Capital Account is denoted by BOPcapital symbol.
How to calculate Balance of Capital Account using this online calculator? To use this online calculator for Balance of Capital Account, enter Surpluses or Deficits of Net Non-Produced (NNPS/D), Non-Financial Assets (NFA) & Net Capital Transfers (NCTr) and hit the calculate button. Here is how the Balance of Capital Account calculation can be explained with given input values -> 121000 = 45000+40000+36000.