English: Current account or trade deficits / surpluses for selected European countries

Current account balances refer to the net import or export activity of a country. A trade surplus is when exports exceed imports. A trade deficit is when imports exceed exports. Germany has a significant trade surplus, meaning it is a net exporter. The other countries often mentioned in this crisis all have trade deficits. Trade deficits have goods and services components. A country that is a net importer of goods and services must borrow capital to fund this activity. This is referred to as the balance of payments identity. It may be helpful to think of it as a form of vendor financing, with the surplus country taking the wealth it receives in exchange for goods and lending it back to the deficit country. A helpful explanation of international trade theory is summarized in this speech by Ben Bernanke: Ben Bernanke-The Global Savings Glut-2005 Economist Paul Krugman summarized the speech here: Paul Krugman-Revenge of the Glut-March 2009

Source data is from the CIA World Factbook, as of December 11, 2011. The GDP figure used is at official exchange rates. Here is the citation for Italy: CIA World Factbook-Italy