AN ANALYSIS FOR THE SUSTAINABILITY OF THE CURRENT ACCOUNT BALANCE IN BRICS COUNTRIES

Abstract

Today, countries are forced to have a current account deficit due to many factors. Many factors such as natural resource deficit, technology deficit, foreign trade, monetary and fiscal policies affect the current account deficit. In this context, the sustainability of the current account deficit is of utmost importance for the sustainable economic growth of countries today. In this study, the sustainability of the current account deficit of BRICS countries was tested empirically. The result obtained from the study is that the current account deficit of BRICS countries is not sustainable unless effective policies are implemented. In this context, it is extremely important for countries to ensure the sustainability of the current account deficit by correctly diagnosing the causes of the current account deficit and applying effective treatment methods in order to achieve sustainable economic growth.