What does the current account balance primarily measure in an economy?

The current account balance is an important part of a country's economic health. It primarily measures the difference between what a country earns from selling goods and services to other countries and what it spends on buying goods and services from them. If a country exports more than it imports, it has a surplus, meaning it earns more money than it spends. For example, if a country sells cars to another country for $1 million but buys only $800,000 worth of electronics, it has a current account surplus of $200,000. This balance helps economists understand how well an economy is doing in terms of trade and can indicate whether a country is financially stable or needs to make changes.