[Economy Q] difference between current account deficit and trade deficit

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Tanvir asked,

What's the difference between current account deficit and trade deficit?

Current account

First the meaning of "Balance of Payment"= keeping track of incoming and outgoing money from a country.
In Balance of Payment, we've two components :

1. Current Account and 
2. Capital Account. 

Current Account= the sum of

1. Balance of trade (exports minus imports of goods and services)
2. Factor Income (interest and dividends from international loans and investments.)
3. Net transfer payments (such as foreign aid).

When we say Current account deficit, means incoming money is less than outgoing money.
For more on Current account and Capital account Click me

Trade deficit

First, the meaning of "Balance of Trade" = difference between value of import and export.
When we are importing more than our exports: we've Trade Deficit.
It doesn't consider foreign aid and interest payments but only the 'trade' part.
Do you see the hierarchy ??
Balance of Payment >> Current Account >> Balance of Trade >> Trade Deficit
If not, then re-read the article!

Want to know about other deficits: Budgetary, Fiscal and Primary? Click me