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# Assess the impact of a persistent current account deficit on the macroeconomic performance of the UK economy
- URL: https://www.a-level-economics-tutor.com/assess-the-impact-of-a-persistent-current-account-deficit-on-the-macroeconomic-performance-of-the-uk-economy/
- Published: 2026-05-17T14:15:10.000Z
- Updated: 2026-05-17T14:19:00.000Z
- Author: Jaisul Naik
- Tags: AQA 25 mark question

### AQA A-Level Economics Paper 2 June 2018

**Using the data in the extracts and your knowledge of economics, assess the impact of a persistent current account deficit on the macroeconomic performance of the UK economy. (25 marks)**

**Plan**

- **Introduction: current account deficit, macroeconomic objectives**
- **Paragraph 1:**  
  - **Argument: on the one hand, a current account deficit is damaging as it can cause unemployment**
  - **Diagram: left shift in AD**
  - **Evaluation: 5.4% percent of GDP, also can be cyclical**
- **Paragraph 2:**
  - **Argument: on the other hand, a current account deficit doesn't have much impact as it can usually self-correct**
  - **Diagram: exchange rates diagram**
  - **Evaluation: depends on the reasons; structural trade deficit**

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