An economy has a trade surplus of 25 billion dollars and an overall current account deficit of 47 billion dollars,. What will be the balance of invisibles for this economy?

A deficit of 72 billion dollars

The correct answer is Option (4) → A deficit of 72 billion dollars

Current Account Balance = Trade Balance + Balance of Invisibles

We are given:

• Trade Surplus: $25 billion
• Current Account Deficit: -$47 billion

Substitute the values:

• -$47 billion = $25 billion + Balance of Invisibles
• Balance of Invisibles = -$47 billion - $25 billion
• Balance of Invisibles = -$72 billion

Therefore, the balance of invisibles for this economy is a deficit of $72 billion.