Definition

Current account transactions consist of exports and imports of goods; exports and imports of services such as travel, international freight and passenger transport, insurance and financial services; income flows consisting of wages and salaries, dividends, interest and other investment income (i.e. property income in System of National Accounts); and current transfers such as government transfers (i.e. international cooperation), worker's remittances or other transfers such as gifts, inheritances and prizes won from lotteries.

Note that investment income includes retained earnings (i.e. profits not distributed as dividends to the direct investor) of foreign subsidiaries or branches. In general, earnings of direct investment enterprises are treated as if they were remitted abroad to the direct investor, with the part that is actually retained in the country where the direct investment enterprises are located shown as direct investment income-reinvested earnings (debit) in the current account and (with the opposite sign) as inward direct investment in the financial account.

For more statistics on economic, environmental and social issues visit online the OECD Factbook 2010.