Lesson Plan

• Describe the components of the current account and differentiate between a deficit and a surplus.
• Explain the main economic reasons that cause a current‑account deficit.
• Explain the main economic reasons that cause a current‑account surplus.
• Analyse a simple numerical example to calculate the current‑account balance.
• Evaluate policy measures that can influence a country’s current‑account position.

• Projector and laptop for slides
• Whiteboard and markers
• Printed handout with summary table of drivers
• Worksheet with the illustrative numerical example
• Calculators for each group
• Kahoot/quiz platform for exit ticket

Imagine your country suddenly imports far more than it exports – what would happen to its balance of payments? Review the basic structure of the balance of payments and the trade balance you have already studied. By the end of the lesson you will be able to identify the key drivers of current‑account deficits and surpluses and calculate a simple current‑account balance.

1. Do‑now (5'): Students answer three quick revision questions on the board to activate prior knowledge.
2. Mini‑lecture (10'): Present the components of the current account, definitions of deficit/surplus, and the main drivers using slides.
3. Group analysis (15'): Using the provided worksheet, groups calculate the balance in the illustrative example and list the reasons for the deficit shown.
4. Case‑study discussion (10'): Compare deficit vs. surplus drivers from the summary table; each group proposes two policy measures to address a persistent deficit.
5. Check for understanding (5'): Whole‑class Kahoot quiz / exit ticket where students match drivers to deficit or surplus.

We recap the five key factors that push a current account toward a deficit or a surplus and highlight how policy can shift these drivers. Students complete an exit ticket summarising one deficit and one surplus driver and suggest one policy response. For homework, they research a real‑world country’s current‑account situation and prepare a short paragraph explaining which drivers are most influential.