Current account is one of the two components of the balance of payments.
The current account shows you the trade position of the country.
A trade deficit refers to just the balance of trade on visible goods. This trade deficit is a component of the current account.
The following are the main components of the Current Account:
1. Trade in goods (visible balance): Change of ownership from/to local country to foreign country has to take place.
2. Trade in services (invisible balance) e.g. insurance and services.
3. Investment incomes e.g. dividends, interest.
4. Current Transfers - These receive nothing in return. They include workers' remittances, donations, aids and grants, official assistance and pensions.