Balance of Payments in a Country's Economy
Balance of payments tells us a lot about the state of an economy, since it shows the flow of payments between one country and all other countries. The balance of payments will illustrate all payments and liabilities to foreign countries, alongside all payments and obligations received from foreign countries. Therefore, it goes without saying that a given country's balance of payments will play a big part in indicating that country's place as regards international trade.
In Company set up that will be concerning itself with export of goods, for instance, the balance of trade will definitely prove useful in portraying where the big markets lie and what it would be most profitable to provide. It was recently reported that Ireland saw the value of it's exports rise by 5% by April this year, which could be said to be a small bit of hope for our strained economy. Data from the Central Statistics Office showed that our imports fell by 6% which led to an increase in trade surplus.
The increase of export of Irish goods to 7.7 billion was said to be 'remarkable' by chief economist with National Irish Bank Dr Ronnie O' Toole. He continued that, 'While worldwide exports have been in freefall since Christmas, Ireland has been virtually alone among non-oil exporting countries in actually increasing export levels.' It was also said that it was the power of the pharmaceutical sector in Ireland, described by some as 'recession proof', that makes up more than half of the goods exported. This is no doubt some good news for those in the sector, the strength of Ireland's pharmaceutical exports allowing them some stability, and indeed hope for others.
About the Author:
Lorraine McInerney is currently working as a Freelance Web Content Article Writer. She has an Arts Degree in English Literature and Ancient Classics, and she is currently a post-graduate student of English, specializing in Post-Colonial Literatures. She will be writing her thesis this summer on "Liminality in Post-Colonial Women's Writing'.
