The Economy’s Balance of Payments

The balance of payments reflects economic transactions made between the economy and other economies during a particular period—transactions in goods and services, income, financial transactions, and more.  The balance of payments is divided into three main accounts: the current account, the capital account, and the financial account.  The current account contains goods and services import and export transactions, income from labor and from investments, and current transfers.  The capital account contains capital transfers and the purchase and sale of nonmanufactured and nonfinancial assets.  The financial account contains direct investments, investments in tradable securities, and other investments between Israeli residents and nonresidents.