Balance of Payments

Definition

A statement summarizing the economic transactions between the residents of a country and nonresidents during a specific period, usually a year. The BOP includes transactions in goods, services, income, transfers and financial assets and liabilities. Generally, the BOP is divided into two major components: the current account and the capital and financial account.

Source definition

International Monetary Fund (IMF), Glossary of Selected Financial Terms, 2006.