capital account

In economics, the capital account is one of two main components of a country's balance-of-payments accounts, recording transactions between residents of one country and those of foreign nations. It specifically tracks long-term and short-term capital movements, such as direct investments in plant and equipment, and portfolio investments in securities.12

The capital account is distinct from the current account, which records trade in goods and services. Understanding the capital account is crucial for assessing a country's overall financial position and its interactions with the global economy.2