Transfer balance

The transfer balance or balance of current transfers is a term used in economics as part of the current account . It encompasses the free services that enter or leave an economy and for which no consideration is given or through which no claims or liabilities arise.

Private sector transfers include remittances from domestic workers to their overseas families; the transfers of the public sector include, among other things, the development assistance , pensions to their nationals abroad and contributions to international organizations .

Debt relief is not part of the balance sheet on transfers, but rather on the balance sheet of asset transfers , as it is not the disposable income of a country that changes, but the assets.

If the current transfers received from abroad (credit) are greater than those made abroad (debit), the balance is positive and one speaks of an active transfer balance (passive in the opposite case).