Balance of payments of Czech Republic

Balance of payments accounting is based on the double entry principle with every item booked as a credit and a debit. Therefore, the overall result will be in balance and the equation for the balance of payments will be zero. Deficits and surpluses can only show up in the sub balances such as in the balances of trade, services, unilateral transfers and the capital and financial account. The registration of a current account deficit essentially means that a country spends more than it produces in a given period.